'Kill the Death Tax,' Says AIADA; Auto Dealers Association Urges Quick Passage of Repeal

    WASHINGTON, Feb. 7 The American International Automobile
Dealers Association (AIADA) called on Congress to quickly pass legislation
repealing the federal "death tax," as a bill was introduced today in the
Senate that would eliminate the onerous tax.
    "The death tax can be a death sentence for family-owned automobile
dealerships," said AIADA Chairman of the Board Richard Kull.  Like many
automobile dealers, Kull's business is family-owned and his four sons and two
sons-in-law are active in company management.  Upon the death of the dealer
principal, the death tax requires surviving heirs to pay taxes of up to 55
percent of the estate's total value -- in cash -- to the federal government.
To pay these unreasonably high taxes, heirs often must sell the business,
break it up or liquidate their assets.  "Death tax relief is a top legislative
priority for AIADA and we will continue to fight on this issue until the tax
is gone," Kull continued.
    The bill introduced today by Sen. Jon Kyl (R-AZ), a leading proponent for
death tax repeal, is co-sponsored by Sen. John Breaux (D-LA), Sen. Phil Gramm
(R-TX), and Sen. Blanche Lincoln (D-AR).  Death tax repeal passed both houses
of Congress last year, but was vetoed by President Clinton.  Because
bipartisan support for death tax relief is already in place in Congress, AIADA
is hopeful that President Bush will move quickly to pass death tax elimination
this year.
    AIADA is a member of the Family Business Estate Tax Coalition, and
participated in the Death Tax Summit on Capitol Hill last May, which helped
generate grassroots support for death tax repeal.

    AIADA represents America's 10,000 franchised small-business automobile
dealerships and their nearly 375,000 employees who sell and service world-
class vehicles manufactured in the U.S. and abroad. Visit AIADA on the
Internet at http://www.aiada.org .