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Wednesday, July 26, 2006
Estate Tax Update
Congress has yet again taken up efforts to dismantle the estate tax. This time, the tricksy, anti-equity gang attempted to add estate tax reduction to the pension bill now being negotiated in conference. But, thanks to Sen. Olympia Snowe (R-ME), who didn't want to see a highly controversial amendment deep-six the pension bill and professing concerns for transparency, refused to sign the conference report.
From BNA (subscription required):
"I think it's sufficient to say adding the estate tax to the pension conference report would have jeopardized the pension conference report." She added that the estate tax measure should be considered on its own merits following an effort to "work across the political divide."
[...]
"We need to have a transparent, fully accountable process," she said, adding that it is obvious Republicans need support from Democrats to gain approval of the measure.
...yet this is merely a flesh wound for the campaign to permanently reduce the estate tax. (Paging Dr. Frist...paging Dr. Frist).
From CQ Today:
Senate GOP leaders...might link a compromise estate tax proposal to a package of popular tax cut extensions that could be considered after the August break.
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But Frist vowed to seek another vehicle to move the legislation important to the Republicans’ conservative base.
"I’m committed to a permanent solution to the ‘death tax,’" Frist said.
Staff and lobbyists said one path under consideration is linking the permanent estate tax reduction to a package of tax cut extensions, which include the research-and-development tax credit.
Slashing the estate tax is a really bad thing, and we're doing everything we can to maintain this most equitable and progressive part of federal tax policy. Here's the good news, though: Elections are coming up in November, and this is why Congress is trying so ardently to reduce the estate tax. And, I have reason to believe that when Senate Majority Bill Frist retires in December, we won't be seeing this much focused effort to dismantle the estate tax.
So, keep checking back here for important estate tax updates, and be on the look for a possible Action Alert in a few weeks when the Senate tries to revive estate tax reduction.
Posted by Craig Jennings
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