The fate of the Estate
Tax lies in the balance. While Republicans are
poised and ready to repeal the Death Tax,
Treasury Secretary Lawrence Summers is
threatening that the measure is far too costly
and faces a certain veto by President
Clinton.
According to the AP, Summers
said the repeal would cost the government $750
billion over 10 years after it takes full effect
in 2010. The estimate is seven times its cost
during a gradual phase out from 2001 to
2010.
It might be the most back-loaded
piece of major tax legislation ever,' 'Summers
wrote in an opinion piece published Monday by
The Washington Post.
This cost, Summers
added, ``would come early in the next decade
just as the baby boomers start to retire. The
result would be reduced pay-down of the debt,
increased interest rates and reduced
investment.''
Despite Summers' editorial,
Republicans and Democrats are coming together in
an effort to repeal the tax.
People are
just genuinely unhappy about it, said Sen.
William Roth, R-Del., chairman of the Senate
Finance Committee. They want some action.
There's no issue that seems to bring more
applause than that.
Sixty-five Democrats
supported the Death Tax repeal in the House, and
nine signed on as co-sponsors to a similar
Senate bill.
We can do it for a lot less
than $750 billion,'' said Senate Minority Leader
Tom Daschle, D-S.D.
The Senate is
expected to vote on the repeal this
week.
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