A Symbolic Gesture

In what can only be considered an attempt to make a statement, a handful of Senators are introducing a new bill to make the federal estate tax repeal permanent. Those Senators have admitted they are several votes short of what’s needed to pass; nonetheless, the Boston Globe reported this morning that the vote will be pushed through this week.

Earlier in the year, Senate Majority Leader Frist had vowed to vote on the legislation before the August recess (hmm, cutting it a little close, I see).

What is puzzling about this zeal to push the bill through this week is that a compromise bill, perhaps permanently raising the exemption amount, would have likely had the support to pass. However, the permanent repeal of a revenue-generating tax that affects only the top 2% of Americans just doesn’t have a tremendous amount of appeal at a time when the U.S. is facing mounting deficits.

And not to blur the discussion without actual facts (horrors!), the Congressional Budget Office released a study suggesting that keeping the exemption amount at 2009 levels would relieve almost all small family-owned businesses and farmers of the tax.

Nonetheless, the push for repeal continues. I guess you can’t blame a Senator for trying…