❗Help close the gap: We still need to raise $40,000 by the end of March. Donate now

Estate tax compromise

Eric Niiler Jun 22, 2006
HTML EMBED:
COPY

Estate tax compromise

Eric Niiler Jun 22, 2006
HTML EMBED:
COPY

TEXT OF STORY

TESS VIGELAND: Earlier this month, Congressional Republicans failed to push through a permanent repeal of the federal estate tax. Opponents argued the government couldn’t afford to lose the revenue, but the issue is back. As early as today the House could vote on a compromise measure. Eric Niiler has more.

ERIC NIILER: Republican Bill Thomas of California is leading this most recent assault on the estate tax. His bill would allow individuals to inherit $5 million tax free or married couples $10 million. That’s a three-quarters reduction in the current estate tax.

Kevin Hassett of the American Enterprise Institute says the reduction may be good politics, but it’s not sound economics.

KEVIN HASSETT: “The more prudent economic course would be to make room for this reduction in the estate tax by reining in spending, and the fact the Republicans haven’t tried to do that suggests that they’re not really interested in fiscal discipline at all.”

A congressional report released this week says the tax break would cost the government $280 billion over the next decade. Even if the House approves the compromise, it faces a stiff fight in the Senate.

In Washington, I’m Eric Niiler for Marketplace.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.