Estate Tax Repeal in Jeopardy After House Vote

Although 26 Democrats joined with Republicans, the House of Representatives voted today [12/3/09] 225 to 200 to retain the 2009 estate tax exemption ($3.5 million) and rates (top rate of 45%) for deaths in 2010 and thereafter.

The following excerpt is from Ben Pershing, House votes to make current estate tax permanent, Wash. Post, Dec. 3, 2009: 

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.