House Death Tax Bill Vetoed

House Death Tax Bill Vetoed

     On August 31, President Clinton vetoed H.R. 8 the Death Tax Elimination Act that the
National Newspaper Association (NNA) and numerous organizations are supporting. The House of Representatives tried unsuccessfully to override the President’s veto, but fell 13 shy of the required two-thirds vote.
     "This veto lets stand a tax that falls most heavily on the shoulders of family-owned community newspapers," said NNA’s president Dan Phillips. "NNA and other small business organizations continue to hope for a time when the death tax is terminated."
     Under H.R. 8, if the next generation continues to operate its business, as is common among community newspapers, there would be no death or capital gains tax. However, heirs would pay capital gains taxes if and when their businesses or other assets are sold.