House approves permanent estate tax repeal.

On April 18, 2002, the U.S. House of Representatives passed legislation (H.R. 586) by a vote of 229 to 198 that would remove the sunset provision and make permanent President Bush's 10-year tax cut package (P.L. 107-16).

The bill also includes language that would permanently repeal the estate tax. Beer wholesalers and their brewer partners urged lawmakers to support estate tax repeal permanency during the 12th Annual NBWA/BREWERS Joint Legislative Conference (April 14.17) - a vote that took place just one day after the Legislative Conference wrapped up.

Senate Majority Leader Tom Daschle (SD) immediately denounced H.R. 586 and claimed the legislation has no chance of passing the U.S. Senate if considered for a vote. However, Daschle has agreed to a Senate vote on a stand-alone death tax permanency provision sometime before late June.

NBWA President David Rehr noted that even though the Majority Leader has vowed to defeat the House-passed tax cut permanency bill in its entirety, support from the Senate to make estate tax repeal permanent is evident.

"In February," said Rehr, "the Senate voted 56 to 42 on a non-binding Sense of the Senate resolution expressing support for permanent estate tax repeal. Passage of the resolution by a 14-seat majority is a strong indicator our U.S. senators support permanent estate tax repeal, and the recent House vote acknowledges the mounting support to once and for all do away with this unfair tax on America's beer wholesalers and small business owners. It is our hope that Senator Daschle will let the will of the Senate decide this issue and allow a clean 'up or down' vote."

Making estate tax repeal permanent would "Alleviate business owners from the costly burden of estate tax planning," Mr. Rehr said. "Once that burden is permanently lifted, businesses would be able to flourish and focus on growth--not survival. Furthermore, getting rid of the estate tax would result in the creation of more jobs and stimulate economic growth."

Mr. Rehr noted that estate tax repeal permanency is a top priority for NBWA and its members. "NBWA will continue to work closely with its industry allies to ensure the estate tax is permanently removed from the federal tax code," he said.