By Jeff Carlson, CCH Washington Staff Writer
The Senate on June 8, 2006, fell three votes short of approving a cloture motion (57 to 41) that would have allowed a full up-or-down vote on legislation repealing the estate tax, although a back-up bipartisan compromise plan is in the works to adjust future exemption and tax rates.
Senate Majority Leader Bill Frist (R-Tenn.) told reporters following the vote that the compromise is being discussed, and did not know what the timing would be for its consideration, although he planned to decide over the next 48 hours.
"I was hoping we would have 60 (votes) to be able to proceed to regular order; show where we were on the total repeal, now I'm going to have to go and see the best way to bring it back to the floor," said Frist. "The end game at this point of having a good, balanced, bipartisan compromise is going to be my goal at this point."
Senate Finance Committee ranking member Max Baucus (D-Mont.), who has worked with Senate Republican Policy Committee Chairman Jon Kyl (R-Ariz.) to negotiate a compromise, indicated he would continue to press for a formula that would garner Senate approval.
"Supporters of full repeal have known that this bill was unlikely to move forward this year," said Baucus in a statement. "With the possibility of full repeal cut off, it's time to find an alternative solution."
Although no Senate lawmakers have produced a definitive compromise, Baucus along with Kyl and Senate Finance Committee member Olympia J. Snowe (R-Maine) have floated alternatives.
Baucus has advocated a progressive rate structure of 15, 25 and 35 percent, depending on the size of the estate and with a $5 million exemption. Snowe proposes a similar plan but with different rates. Kyl has pushed the idea of a flat 15 percent tax rate, equal to the current capital gains tax, for estates above $5 million, $10 million if married. Senate Finance Committee Chairman Charles E. Grassley (R-Iowa) said there are also several variations on the above proposals.
"We're going to get something on the estate tax," asserted Kyl, declining to indicate possible timing or details.
Given the nature of election year politics and lawmakers' perceived needs to pass some sort of reform, he's probably right.
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Added to the news on June 9, 2006.
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