The AFL-CIO sent this letter to all House members on June 5, 2002, urging them to vote "No" on H.R. 2143, which calls for permanent repeal of the estate tax. The letter encourages Congress to "delay the implementation of any new tax cut, including those which have already been enacted but not yet implemented, until our domestic priorities are met and Social Security and Medicare are fully protected." June 5, 2002 Dear Representative: The AFL-CIO strongly urges you to vote against H.R. 2143, the permanent estate tax repeal act, which the House is scheduled to consider tomorrow. H.R. 2143 would make permanent the temporary repeal of the federal estate, gift, and generation-skipping taxes included in last year’s tax bill rather than address the needs of our nation’s working families. Although last year’s tax bill has already helped reduce federal budget surplus estimates over the next ten years from $5.6 trillion to $1.6 trillion, H.R. 2143 would use an additional $100 billion during this same period to permanently repeal three of the most progressive taxes in the internal revenue code. In fact, this fiscally irresponsible legislation would also cost taxpayers an additional $740 billion during its second ten-year period from FYs 2013-2022. H.R. 2143 would also significantly increase the share of federal taxes paid by our nation=s working families. Although opponents of the estate tax often argue that it forces small family-owned farms and businesses to liquidate their assets, the estates of less than 2% of all taxpayers pay estate taxes each year, and only a small fraction of estate tax revenues are collected from family-owned farms and businesses because current tax law includes special tax provisions for these enterprises. In fact, less than 3% of the 47,500 taxable estates in 1998 had significant farm or small-business assets, involving approximately 780 small businesses and 650 farms. The 107th Congress should delay the implementation of any new tax cut, including those which have already been enacted but not yet implemented, until our domestic priorities are met and Social Security and Medicare are fully protected. For all of these reasons, the AFL-CIO strongly urges you to vote against H.R. 2143. Sincerely, William Samuel, Director DEPARTMENT OF LEGISLATION