Death of death tax'

By By Greg Snowden / state representative
April 27, 2004
The death of the "death tax" highlighted the action in the Mississippi House of Representatives during 16th week of the 2004 Regular Session. Only two weeks of work remain before the Legislature is scheduled to adjourn sine die on May 9.
SB 3174 sought to reinstate the estate tax in Mississippi, which had expired as of Jan. 1, when the federal estate tax law, to which state provisions had been tied, itself was changed. Republicans and fiscally conservative Democrats deride the estate tax, federal and state, as a "death tax" that unfairly re-taxes in death the same assets that already have been taxed in life.
Last Tuesday, with no fanfare and little debate, the House voted 64 to 57 in favor of SB 3174, but because a 3⁄5 vote (74 out of 122) is required for the passage of any revenue measure, the bill failed.
Proponents of the tax, who covet the $10 million to $15 million annually taken by the state in estate tax revenues, held the bill on a motion to reconsider, and began (figuratively) twisting arms to encourage potentially waffling members to change their vote.
But when the final showdown came with Wednesday's decisive roll-call, 49 House conservatives of both parties stood together and killed the death tax by a vote of 70 to 49, four votes short of the
3⁄5 margin required for passage.
The demise of the death tax signals once again that the overall philosophical tone of the House, as reflected in a variety of conservative floor successes this Session, is considerably more to the right than has been the case in years past, when re-enactment of the estate tax hardly would have been questioned, much less seriously challenged.
Apprehension about rising conservative strength on the House floor evidently is the reason that the House leadership has not allowed the full body to vote on tort reform.
SB 2763, a Senate tort reform measure, died on the House calendar last week when Rep. Ed Blackmon (D-Canton) declined to bring the bill to the floor for debate, as is his prerogative as chairman of the Judiciary A committee. HB 1323, a House banking bill into which the Senate inserted a strong tort reform package, undoubtedly will die next week for the same reason.
Chairman Blackmon, whom Speaker Billy McCoy (D-Rienzi) re-assigned to handle HB 1323 in the place of tort reform supporter Rep. Danny Guice (R-Ocean Springs), simply will refuse to bring the bill before the full House for consideration, and the bill will die with Thursday's deadline.
There was some slight movement on the tort reform front this week, however, as Speaker McCoy endorsed a Blackmon-sponsored suspension resolution (required because filing deadlines have already passed) to bring forward a new tort reform bill that reportedly will address the matters contained in SB 2763, including issues such as venue (where lawsuits are heard), products liability, punitive damages, jury participation, and expansion of a medical malpractice insurance plan already in place and administered by the state.
Significantly, however, under the terms of the Blackmon suspension resolution, any new bill would not contain provisions for caps on non-economic damages, which are anathema to trial lawyers and other tort reform opponents.
Although the suspension resolution, HC 114, passed the House by a vote of 110-8, the Senate is not expected to agree to suspend the rules to allow consideration of any bill that is incapable of even addressing caps on non-economic damages, and a Senate-amended suspension resolution allowing for caps may well be sent back to the House.
No new tort reform bill can be drafted or introduced in either House unless both chambers agree to a resolution by a2⁄3 margin to suspend the rules so as to allow for a post-deadline filing.
State Rep. Greg Snowden, R-Meridian, represents District 83. E-mail him at greg@gregsnowden.com, call his Meridian office at 693-5700, or cell phone, (601) 527-5350. You can also visit his Web site: www.gregsnowden.com.