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US House To Vote On Permanent Estate Tax Bill Next Week



By Martin Vaughan, Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- The U.S. House of Representatives next week will vote on legislation to extend current estate tax rates permanently, but when and what action the Senate might take on the bill remains unclear.

The House will vote next week, Wednesday at the earliest, on estate tax legislation from Rep. Earl Pomeroy (D., N.D.), according to a schedule released by House Democratic leaders.

The Pomeroy bill would make permanent a 45% rate on inherited wealth, with the first $3.5 million exempt from the tax. Without congressional action, the tax will be repealed in 2010 and return in 2011 at a 55% rate with a $1 million exemption.

The Pomeroy legislation, backed by President Obama, would cost $233 billion over the next 10 years since it represents a tax cut when compared to current law. House Democrats earlier this year agreed that the cost of the bill would not have to be paid for--as long as Congress passes a law to make sure new discretionary spending or tax cuts are paid for in the future.

However, the Senate on Monday is set to begin a debate on health-care overhaul legislation that is expected to take several weeks. In addition, there are enough opponents of the Pomeroy bill to block action in the Senate.

That includes Republicans and several Democrats who favor lowering or abolishing the estate tax.

-By Martin Vaughan, Dow Jones Newswires; 202-862-9244; martin.vaughan@ dowjones.com


  (MORE TO FOLLOW) Dow Jones Newswires
  11-25-091550ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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