California Estate Planning Blog by Kevin Staker

December 16, 2010

Tax Bill Likely to Pass House Unchanged This Evening or Tomorrow (In Other Words, the Republicans Will Win the Game of Chicken)

Filed under: estate tax,estate tax news,Kevin Staker — Kevin Staker @ 4:59 pm

A lot of procedural machinations in the House.  However, here is the likely order of things:

– House debating the tax bill as I write this.

– Next, a vote on an amendment to lower estate tax exemption from $5M to $3.5M.  Interesting to see whether or not will pass.  Not likely, although Democrats are pretty incensed by all this.   House Dem leaders claim have not counted votes and do not know what will happen.

–  If amendment passes, House then votes to approve the bill.  Sent to Senate and the game of chicken resumes with the Republicans.  Would be very interesting.  Democrats just are not handling the PR on this well at all.  Nearly all American voters would likely say, yes give me my income tax cut and lower the exemption.  However, the Republicans are handling all of this brilliantly.  All or nothing.  They know if Dems force delay to next year; Dems will get a worse deal.  House will then capitulate.

–  If estate tax amendment loses, or even if it passes  and then the Democrats cave in later as they almost surely would, the House passes the Senate version and sends to the President.

What a great legislative victory for the Republicans.  Personally, I have tried to keep my personal beliefs out of my postings but I must say I believe it wrong to borrow over $800 billion from our descendants to pay for us to live beyond our means.

By Kevin Staker

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