House Passes Estate Tax Repeal Bill, But Its Future Is Uncertain. The vote to repeal was lopsided, with a 279-136, with 65 Democrats joining the Republican majority. President Clinton has clearly indicated his intention to veto the current bill if it passes the Senate, characterizing the repeal as a Republican tax break for the very wealthy. In a veto override vote, some of those voting in favor Friday might choose not to confront the President. In other words, even with Senate approval the repeal is still far from assured.
Cynical observers chalk the entire exercise up to election-year politics.
Democrats, equally disingenuous, can claim to be protecting the poor and middle class from Republican attempts to give special treatment to the very wealthy. Indirect effects are somewhat more widespread, with many middle-class families spending at least some money on estate tax planning. Republicans point to another indirect cost the sale of some family businesses forced by inability to pay the estate tax on the death of the family patriarch or matriarch. The loss of tax revenue from repeal of the estate tax would be substantial. Republicans insist, however, that the federal government can forego that tax revenue and still offer a substantial additional tax cut from income and excise taxes.