According to Nasqaq.com, the U.S. House of Representatives is scheduled to vote on a piece of legislation next week that seeks to permanently extend the current estate tax rates. The bill was written by Earl Pomeroy, a Democrat from North Dakota, and will be voted on next Wednesday. However, it is still unclear when the Senate will consider the tax law change.
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 Without congressional action, the tax will be repealed in 2010 and return in 2011 at a 55% rate with a $1 million exemption.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.