Friday, June 3, 2011

Estate Tax Fix on Track, Despite Restive House Democrats

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The estate tax compromise reached by congressional Republicans and President Obama is still on track for passage, although liberal House Democrats find it hard to swallow. It is expected that the bill will come to the Senate floor today or tomorrow, where enough Democratic senators have expressed support (or at least not outright opposition) to ensure 60 votes.

Prospects in the House are less certain, where Democratic leaders, most of the liberal bent, remain upset with the President for approving an estate tax compromise that includes a $5.0 million exemption and a 35% rate. BNA's Daily Tax Report quotes Rep. Chris Van Hollen (D-Md.) as saying yesterday that Democratic leaders are considering a counteroffer to the White House that would increase the estate tax rate above the 35% that is part of the deal with Republicans. But is unlikely that the White House would agree to such a change, given the importance of the estate tax compromise to Republicans and the political value to the President of distancing himself from the House Democratic leadership.

Harold W. Pskowski, Managing Editor for Estates, Gifts and Trusts

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