Tax-&-Spend Dems Vote to Extend Estate Tax

The Pelosi democrats voted tonight to extend the estate tax.
Not one single House Republican voted to support the tax.
The vote was 225-200. 26 democrats joined 174 Republicans against the legislation.

The Christian Science Monitor reported:

The House voted Thursday to extend the current estate tax indefinitely, which would otherwise have expired at the end of the year. It makes this year’s rates permanent – 45 percent tax rate for estates over $3.5 million for individuals and $7 million for couples

The vote marks the first skirmish over Bush-era tax cuts, which are all set to expire in 2010, though it brings only a degree of clarity to a complicated issue.

In order to avoid an expiration of the tax, the Senate must also vote before Dec. 31. But that is unlikely with the Senate tied up with healthcare reform. A likely option is a temporary extension of the current law that would tide the Senate over until it can take up the issue more fully.

Otherwise, if Congress takes no action, the estate tax would end on Dec. 31, then spring back in 2011 at a higher rate – 55 percent – for estates of more than $1 million. That means that a $5 million taxable estate would have a liability of $675,000 in 2009, $0 in 2010, and $2 million in 2011, according to Deloitte Tax in Washington.

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