A group of DINOs are trying to reach a deal that would slash the estate tax (Paris Hilton tax) for the extremely wealthy and cost the government hundreds of billions of dollars. The group is headed by Senator Max Baucus (D?-MT), a long-time proponent of the repeal, and includes Senators Dianne Feinstein (CA), Patty Murray (WA), Evan Bayh (IN), Ken Salazar (CO), Mark Pryor (AK), and Maria Cantwell (WA).
A bill that would have permanently repealed the estate tax came three votes short of the necessary 60 for closure in the Senate earlier this month. But the "compromise" that the Senators are working on would be similar (if not identical) to the one proposed by conservative John Kyl (R-AZ). The Center for Budget and Policy Priorities has composed a chart that reveals the cost of Kyl's two "compromises" is still extremely heavy.
What's more, this tax only affects the top 0.5% of estates in this country, and the Republican claim that small businesses and farms will be destroyed by the tax are not supported by facts.
The Congressional Budget Office found that, if the 2009 exemption level of $3.5 million ($7 million per couple) had been in place in 2000, fewer than 100 family-owned businesses and only 65 farm estates would have owed any estate tax at all.
The permanent repeal of the estate tax would be fiscally devastating and would benefit only the Paris Hiltons of the world. Any Democrats, especially those that identify themselves as "fiscally responsible" should oppose the repeal and any compromise that would be almost as irresponsible.
Contact information for Senators here.
Estate tax slideshow here.
Information on "compromise" here.