Estate Tax Extension Faces Suffocation In The Senate

Thursday’s House vote of 225-200 in favor of permanently extending the estate tax at a rate of 45% on individual estates over $3.5 million and family estates over $7 million is no guarantee that the Senate will even take up the bill before the estate expires January 1, 2010. Senate Minority Whip Jon Kyl says Democratic Congressmen and Senators will be in for a rude shock when the estate tax revenue disappears in a puff of smoke New Years Day. Republicans universally oppose extending the tax, and enough Democrats crossed the aisle to vote against the extension in the House to suggest that mustering 60 Senate votes to continue making death a taxable event could be a real challenge for Senate leadership.