–Vice President Biden To Meet With House Dems Weds Afternoon
–Rep. Van Hollen: Says Estate Tax Provision Is ‘Bridge Too Far’
–House and Senate Democrats Focus Ire On Estate Tax Provision
By John Shaw
WASHINGTON (MNI) – Rep. Chris Van Hollen, a member of the House
Democratic leadership team, said Wednesday in a TV interview that he is
“not sure” the $900 billion tax and spending package that President
Obama negotiated with Republican leaders can pass the House if it
includes a controversial estate tax provision.
In an interview on MSNBC, Van Hollen said the provision of the
agreement to impose a 35% tax on estates only after reaching a $5
million threshold is a “bridge too far” for most congressional
Democrats.
He said the provision would cost $68 billion a year and would
affect only 39,000 estates in the U.S.
The provision, he said, is a “huge bonanza” for the very wealthy
and has “no economic rationale.”
“There is no reason this had to be in the package,” Van Hollen
said.
Van Hollen said that Republicans were “amazed” the Obama
administration made a concession on this provision, which he called a
“deal breaker” for many Democrats.
Van Hollen is only the most recent Democrat who has zeroed in on
the estate tax provision as the most objectionable part of the huge
package.
Senate Majority Leader Harry Reid has also said that he has deep
concerns about the estate tax provision. “I’m not a big fan of what was
negotiated,” Reid said.
Some Democrats have been pressing for an estate tax provision that
would set a 35% tax on estates of $3.5 million or more. Another version
would set it at 45%.
Vice President Joe Biden is traveling to Capitol Hill in a few
hours to sell the plan to restive House Democrats. Senate Democrats are
now meeting to discuss the plan.
The Senate is expected to vote first on the tax and spending
compromise, probably early next week.
** Market News International Washington Bureau: (202) 371-2121 **
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