House bill lets estate tax be current rate

WASHINGTON, Dec. 3 (UPI) -- The U.S. House approved a measure Thursday that would make the current estate tax rate permanent, over objections of some Democrats and Republicans.

The bill, passed on a 225-200 vote, would make permanent the current estate tax rate of 45 percent, with an exception of $3.5 million per individual, The Washington Post reported. If no action were taken, the estate tax would disappear in 2010 then reappear in 2011 under higher rates of 55 percent and $1 million exemption, the rates on the books before President George W. Bush took office.

Twenty-six Democrats joined all Republicans present voting no.

The Senate faces a Dec. 31 deadline to address the issue, but given that the chamber is in the midst of the healthcare debate, it was unclear when -- or if -- the chamber could consider the measure, the Post said.

Some Democrats in both chambers said they prefer higher estate tax rates, saying the levels before Bush took office were fair and provided the government with much-needed funds, the Post said.

Republicans, meanwhile, said they philosophically oppose the concept of any estate tax.

"Death should not be a taxable event," said Rep. Dave Camp, R-Mich., the top Republican on the House Ways and Means Committee. "The fear of death should not be a reason for Americans to hire a battery of accountants and lawyers to find legal ways to reduce the bite of the estate tax."

The current rates expose roughly 0.2 percent of all estates to taxation in 2009, the Tax Policy Center said.