ESTATE WACKS.
The Senate voted yesterday to pass, 51-48, the Lincoln-Kyl amendment to lower the estate tax. It's essentially a $250 billion giveaway to people whose estates are worth more than $7 million. The various Midwestern Democrats who supported it will undoubtedly claim this about all those small family farmers who amass large fortunes, but only .02 percent of the bill's costs will actually go to those fortunate agrifamilies. Most just goes to the massively wealthy. You know, like investment bankers. Every single Senate Republican voted for the amendment, along with nine Democrats, most in the "moderate" caucus of no policy positions: Bayh, Baucus, Cantwell, Landrieu, Lincoln, Murray, the Nelsons, and Tester.
But there is some light at the end of the tunnel. For one, the provision isn't likely to make it into the final congressional budget resolution, since both House negotiators and Senate Budget Committee Chair Kent Conrad will oppose it. In case it does, Sen. Dick Durbin offered an amendment, which also passed, 56-43, requiring that if any estate tax reduction is included in the bill, an "equal amount of aggregate tax relief is also provided to Americans earning less than $100,000 per year." And though it's good that working people would receive proportional tax breaks under this plan, there really is no good reason to reduce the estate tax. As Ezra observed yesterday, all the folks freaking out about how the Obama administration's very reasonable plan to lower the tax deductions to Reagan-era levels would hurt charities haven't said a peep about how removing the estate tax would hurt charities much more.
It's nice to see our conservative and moderate senators taking time to focus on the people who have been really hit hard by the economic crisis -- the heirs of estates ranging between $7 million and $10 million.
-- Tim Fernholz
Feeds: 



COMMENTS (27)
Cantwell's protecting her own estate, and especially those of other Seattle high tech types who were paid in MS stock during the tech boom.
What's her RealAudio stock worth?
That's good old-fashioned self-interest.
Posted by: Davis X. Machina | April 3, 2009 10:54 AM
If the rich could pay the poor to die in their place, then the poor could make quite a living.
Old saying.
Posted by: shrimplate | April 3, 2009 10:58 AM
And Murray is also protecting Cantwell's estate? That's some serious Senate collegiality right there. Or is it that she fears that her constituents will punish her for not giving Bill Gates' estate a big tax break?
Posted by: Michael Bérubé | April 3, 2009 11:00 AM
Why did Tester vote for it?
Posted by: par4 | April 3, 2009 11:08 AM
Christ. Allow me to vent for a moment:
I have a client. She is a wingnut and what's worse, she thinks it's acceptable to mouth off to anybody about what Fox News got her fauxraged about today.
Well one day last fall, I called to talk about a Very Important Matter and instead of talking about that, I got treated to a rant about how Obama was going to win the election and he was going to allow the estate tax to be re-instated and she'd have nothing to leave to her children.
Now, I don't know her personal finances but the more she yammered on about it, the more I could tell she didn't have the slightest fucking clue (remarkable because otherwise she is a sharp businesswoman) about how the estate tax works. Furthermore, it was clear that if she did get nailed by the re-instated estate tax, it would be because somebody didn't plan well for it.
This is just like Joe the Not-A-Plumber getting all worked up over the 'confiscatory' tax he might have to pay one day on his imaginary plumbing empire.
FSM save us from the ignorant rabble who continually fall for the FUD peddled by the right-wing noise machine.
Posted by: r€nato | April 3, 2009 11:50 AM
...oh and this woman owns a business which depends A LOT on people having disposable income. So you'd think that maybe she would be pissed at the GOP for putting the economy in the tank which has caused her business to drop by 50% or more.
Nope. She'd rather be poor and have Rethuglicans in charge rather than prosper under Democrats. Fucking fool.
Posted by: r€nato | April 3, 2009 11:53 AM
Good rant, r€nato.
Posted by: Bribes | April 3, 2009 12:23 PM
Actually, Bill Gates doesn't want the estate tax repealed and has given most of his wealth to his foundation. Bill's father, William H. Gates, Sr., wrote a 2004 book about why the estate tax should stay in place, "Wealth and Our Commonwealth: Why America Should Tax Accumulated Fortunes" (Beacon Press). My son interviewed Gates, Sr. about his book in '04 on WTUL, the Tulane U. radio station, and it was obvious from the interview that keeping the estate tax is a big priority for the Gates family.
Posted by: Donald Miles | April 3, 2009 12:52 PM
Right you are, Donald. I should have asked whether Murray was afraid that her constituents will punish her for not giving Bill Gates' estate a big tax break that Gates himself does not want.
OK, fixed now.
Posted by: Michael Bérubé | April 3, 2009 12:56 PM
Gates is in a class with just a few peers. He can give away almost all of his wealth and his kids will still be very well set. But there are literally thousands of Microsoft millionaires in the area that this bill could effect, otherwise liberal folks that give a lot of money to local democrats. That's where Cantwell and Murray have their base.
Posted by: Mark Centz | April 3, 2009 1:16 PM
I don't care about the Microsoft millionaires. You look at the demographics of Washington and Cantwell and Murray are F#@$ing their middle income base, even when BillG Sr. would give them all the air cover in the world.
Having attended BillG Sr.'s pro-estate tax events at Microsoft, I can tell you they didn't need to do this for Microsoft folks.
Where this is coming from is the Seattle Times. With the P_I dead, and Blethen, the reactionary who owns the Seattle Times, making his dwindling inheritance a one-issue election every time, they are seeking to defuse the Times. What cowards.
Posted by: dollared | April 3, 2009 1:51 PM
Why did Tester vote for it? I would bet that his rural constituents believe that they are the "small farmers" who would supposedly be hurt. That belief is very firm among most farmers, no matter how far from the truth it may be for them.
They, too have fallen for what Fox and the Repubs are telling them.
Oh, and have you ever seen the direct mail that registered Repubs get? On visiting my elderly widowed mother recently, I picked up her mail for her, and was appalled at the lies and outright crass evil falsehoods she gets - they go on for several pages stirring up fear with lies. Yes, I censored it - I threw out the most obvious right at the mailbox. But it was a drop in the bucket.
Posted by: tejanayanqui | April 3, 2009 1:53 PM
Remember how happy we all were when Patty Murray, in her running shoes, and Maria Cantwell won senate seats in Washington? Oy.
Other than Barbara Boxer*, is there truly a reliable progressive female in the Senate?
Feinstein, Lincoln, Landrieu? God no
McCaskill, Murray, Cantwell? in the Bayh caucus
Stabenower? Not sure
Who am I forgetting?
*B-box, of course, will always have the stain of acting like an arrogant, dismissive jackass while campaigning for Lieberman
Posted by: mocasdad | April 3, 2009 1:56 PM
Of course, the number of reliable progressive male democratic senators is also distressingly thin. Don't mean to come off as sexist.
Posted by: Anonymous | April 3, 2009 1:57 PM
I always enjoy hearing people piss and moan about the estate tax. Usually, most of the people that hate it will never be subjected to it in the first place. Otherwise if they are, I tell them about a valuable capitalist tool used to ameliorate the estate tax - it's called life insurance. Nothing socialistic about it.
Posted by: leftcoastindie | April 3, 2009 2:09 PM
The family business that those Washington Senators might be protecting: Nordstroms.
Posted by: Wapiti | April 3, 2009 2:36 PM
Ok...I'm in Seattle, and I work at MSFT, though I'm worth about 0.003% of BillG's total. Even that has me more comfortable than my parents could have dreamed.
I'm pissed at Murray and Cantwell, and I'm going to ask them why they voted for this...there's no good reason for any Democrat to do so.
Oh, and it's "Nordstrom", not "Nordstroms".
Posted by: JB | April 3, 2009 4:37 PM
My guess is the Washington Cantwell and Murray are pandering to is the ranchers and farmers in Yakima, the Tri-Cities, and Spokane.
Posted by: JZ | April 3, 2009 5:11 PM
"Other than Barbara Boxer*, is there truly a reliable progressive female in the Senate?"
Barbara Mikulski?
Posted by: Dirty Davey | April 3, 2009 7:22 PM
All you have to do--ALL you have to do to avoid the estate tax is to transfer your wealth (your beautiful farm, your *choke* little strip-mining business) to your heirs while you're alive.
It's only the greedy old bastards who hang onto it with their clawed liver-spotted hands that make their worthless wastrel children pay the estate tax.
Posted by: pbg | April 3, 2009 7:45 PM
Rich people buy enough life insurance to pay for the estate taxes. It's not that hard to do.
Posted by: Ed Dunkle | April 3, 2009 9:28 PM
"My guess is the Washington Cantwell and Murray are pandering to is the ranchers and farmers in Yakima, the Tri-Cities, and Spokane."
My guess is those ranchers would rather endure a hoof and mouth epidemic, on the heels of a mad cow outbreak, than vote for a democrat.
Posted by: mocasdad | April 3, 2009 9:36 PM
Mikulski is an aggressive fighter for the little guy once every six years for a month or two - the rest of the time she oscillates between nameless and pernicious. You've forgotten New York's new junior Senator Kirsten Gillibrand - way to the right of Hillary Clinton, but without the competence.
Posted by: pa d2 | April 3, 2009 11:25 PM
Laptop Batteries
Laptop Batteries discount laptop battery
Posted by: Laptop Battery | December 3, 2009 3:25 AM
Stainless steel pipe and tubing are used for a variety of reasons: to resist corrosion and oxidation, to resist high temperatures, for cleanliness
Posted by: sewage pump | December 3, 2009 8:23 PM
If you don't know about jewelry knowledge, but want to action you can see jewelry fashion review,then maybe you can save your money!
Posted by: jewelry fashion review | December 28, 2009 2:22 AM
Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic. If possible, as you gain expertise, would you mind updating your blog with more information? It is extremely helpful for me.
Posted by: cpcentercity | January 29, 2010 1:10 AM