Patty Murray

Mrs. MURRAY

Mrs. MURRAY. Mr. President, today I am introducing the American Family Business Preservation Act of 1995. My father ran a small business in Bothell, WA. He taught me as long as I worked hard and played by the rules, I could build a better life for myself and my family. But, for years, it seemed that as hard as my husband and I were financial disaster. Small businesses are the heart of the American economic system. They are the essence of the American dream. And, sadly, for many small business owners that dream has been fading. Our great American middle class is nervous. My bill aims to alleviate that anxiety and restore the dream. Mr. President, this bill will specifically reduce the particularly onerous estate and gift tax imposed on our small businesses during the 1980s. This bill allows small manufacturers, service industries, farmers, and woodlot owners to leave their children the benefits of their hard work. It will end the ridiculous penalties the Federal Government has imposed on American families when a loved one dies. It will keep American families engaged in small business financially solvent. This reform is especially important to my home State of Washington. It will encourage the stability and diversity of our economy. It will help assure that farms and woodlots stay in family hands and thereby ensure stability in forest management. It is an environment-friendly tax cut. Specifically, the American Family Business Preservation Act will reduce the 55-percent estate tax rate to 15 percent as long as the heirs continue to operate the business. If, for any reason, the heirs are unable to operate--but continue to own--the business, the maximum rate will be 20 percent. It indexes the unified estate and gift tax credit for inflation. This credit--which effectively exempts from tax estates valued at less than $600,000--was last increased 14 years ago, in 1981. And, the bill allows hard-working Americans to keep more of their money in their family. I believe if you work hard and you play by the rules, you should be able to enjoy the rewards. When this bill passes, we will be able to give up to 15 percent of our earned income each year to family members without being subject to gift tax. Mr. President, this provision is important because many of this Nation's hard-working people have yet to feel the impact of the current economic expansion. During the past 2 years, we have created more than 5 million jobs. Interest rates and inflation are subdued. We have reduced the size of Government. And, we have trimmed the one-third of our Federal budget deficit. I am proud of this record. But, we need to make sure working people really benefit from this economic progress. Mr. President, we are at an economic crossroads. We can continue along the traditional route of corporate buy-outs, declining wages, and a skittish middle class. Or, we can move boldly into a new century in which jobs and lives are valued, and all American families have a stake in our economic well-being. That is why this bill is so important. Mr. President, it gives our kids hope in the future. It brings common sense and the voice of average Americans to our tax policy. Hard- working Americans need to be respected, and they deserve to reap the benefits of their hard work. Our only hope of restoring the American dream is to empower the middle class. When my colleagues, Congressman Bill Brewster and Congressman Jim McCrery, introduced the companion bill in the other body in the last Congress, it deservedly gained quick and solid bipartisan support. I expect the same record in this body. Mr. President, I ask unanimous consent that the full text of my bill be printed in the Record.