House votes to make current estate tax permanent

[waiting for hope]

By Ben Pershing | December 3, 2009; 2:42 PM ET

The House approved Thursday a measure making the current estate tax rate permanent, overcoming the objections of an unusual coalition of liberal and conservative critics.

The bill passed, 225 to 200, with 26 Democrats joining all Republicans present to vote no. It would make permanent the current estate tax rate of 45 percent, with an exemption of $3.5 million per individual. If Congress does not act, the estate tax would disappear altogether in 2010, then return in 2011 under the higher rates -- 55 percent and a $1 million exemption -- that existed before President George W. Bush took office.

The Senate faces a Dec. 31 deadline to address the issue, but it's not clear when that chamber will find the time to do so in the midst of its marathon health-care debate. It's also unclear whether the House's approach on the estate tax could garner the 60 votes necessary to move forward in the Senate.

Some Democrats in both chambers would prefer to see higher estate tax rates, arguing that the pre-2001 levels were fair and provided the government with much-needed funds. Making the current rates permanent will take a bite out of the federal treasury, with the government estimated to lose $234 billion in revenue over the next 10 years.

Most Republicans, meanwhile, don't want any estate tax at all, opposing the concept on philosophical grounds.

~Snip~

While Republicans often invoked the specter of distressed farmers and business owners Thursday, Democrats suggested the GOP was trying to mask their true desire to shield the wealthiest Americans from taxation.

"Abolishing the estate tax would add billions and billions to our deficit -- and while a small number of wealthy families would benefit, the growth of our economy as a whole would suffer," said House Majority Leader Steny Hoyer (D-Md.)


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The bill passed, 225 to 200 ... any questions now on who our government works for? I'll give you a hint - it isn't for us.

[Scruffy1]

1. I'm so sick of the nonsense around the inheritance tax

http://picasaweb.google.com/minfellman/20091109160251

Only 2% of Americans inherit anything at all and yet the working class fell for the bullshit hook line and sinker.

[John N Morgan]

2. Agreed. And, notice the house voted to cut the rate from the expected 55%. Down from initial 90%

It's about preventing dynasties.

If a person who's grown in a house that is worth $3.5M and inherits the family business, rolladex, education, etc and can't keep the legacy going with that ... well call it Darwinism. Besides, that is what life insurance is supposed to cover.

[hfojvt]

3. actually this seems like a victory

since the CBPP was worried about cuts in the estate tax

http://www.cbpp.org/cms/index.cfm?fa=view&id=3019&emailView=1

[waiting for hope]

4. I thought the whole idea was to get back prior

to all the tax cuts Bush made ..

"The House approved Thursday a measure making the current estate tax rate permanent" ...

I don't see permanent as a victory.

"If Congress does not act, the estate tax would disappear altogether in 2010, then return in 2011 under the higher rates -- 55 percent and a $1 million exemption -- that existed before President George W. Bush took office."