There is something inherently wrong with a tax system that

leaves some married couples paying more than if they had filed as singles.

And there is something very wrong with a tax system that

forces families to sell their businesses or farms when the head of the

family dies.

Congress corrected both of those flaws this year by approving two

tax-reform measures on a bipartisan vote. President Clinton vetoed both

bills. Unfortunately, the U.S. House of

Representatives couldn’t muster enough votes to override

the president’s vetoes.

According to the president, the reforms would cost the U.S.

Treasury too much _ too much in a day when our

government is running a large surplus.

Currently, the Internal Revenue Service can collect up to 55

percent of the assets of a family-owned business or farm when a father or

mother dies. Often those assets are not liquid — in other words, it’s not cash

sitting in some bank account ready to pay Uncle Sam. Most of the money is

tied up in property, machinery, equipment or inventory that is critical to the

operation of the business.

Over the years, Congress has reduced the estate tax in small ways.

The legislation President Clinton spiked would have gradually eliminated

the so-called “Death Tax” over the next decade, giving the treasury time to

adjust and garner new revenues from other federal taxes _ taxes paid

by those flourishing family-owned farms and businesses.

Hopefully, with a new president, Congress will send both bills back

to the White House, and next time they will be signed into law.

Don Brunell is president of the Association of Washington

Businesses. AWB is the state’s oldest and largest statewide

business organization, whose 3,700 members employ more than 600,000

workers across the state.