I filed HB 125 as a message that I believe there is a fundamental problem with people accumulating assets with income that has already been taxed, then their survivors are required to pay taxes on those assets again through an inheritance tax.

In FY'96 and FY '97, the State of Alaska collected approximately $1.7 million dollars in inheritance tax. Department of Revenue has estimated that Alaska will collect approximately $1.7 million in inheritance taxes in FY'99.

In 1998, the State of Alaska collected $5.5 million in inheritance taxes. It has been speculated that the source of this increase was one prominent publisher in the State of Alaska. Alaska is the home of many success stories of small businesses run by families who struggled and saved to build up a successful business, risking everything they had. Many Alaskan businesses are passed from generation to generation and I feel the government has no right to step in and crush that hope under the burden of confiscator taxes.

Because Alaska's inheritance tax is a "sponge tax" siphoning off a portion of the federal inheritance tax, I have introduced HJR 34 "Relating to the federal estate and gift taxes." This resolution encourages Congress to pass House Resolve 86 and repeal federal estate and gift taxes.

I feel a resolution from the Alaska State Legislature can do two things. First, it will educate the people of Alaska on H.R. 86 so Alaskans can get their message of support to Congress. Secondly, it can serve as additional support to the almost two hundred co-sponsors of H.R. 86, including Congressman Don Young.