SENATE PASSES ESTATE TAX REPEAL

By: Todd Shields Tax Would Be Gradually Phased Out


The U.S. Senate passed a broad tax-cut bill Wednesday afternoon
that includes eventual repeal of the estate tax, which is blamed
for contributing to the demise of family-owned newspapers.

The chamber's 62-to-38 vote sends the legislation to a conference
committee that includes members of the U.S. House of
Representatives, which earlier voted to repeal the estate tax.

The committee is to reconcile differences in the chambers' tax
measures. Each body is to vote on the committee's work before the
bill is sent to President Bush, who has repeatedly called for tax
cuts, including elimination of the estate tax.

Both the House and Senate versions envision a gradual reduction
in the estate tax before ending it in 2011. The main differences
in the tax-cut bills lie elsewhere. The House passed steeper cuts
in income-tax rates than did the Senate, and much of the
conference committee's work is expected to revolve around
reconciling those differences.

It was unclear what effect, if any, the anticipated defection
from GOP ranks of Vermont Sen. James Jeffords might have on the
fate of the tax bill. His move to independent status would tip
the power balance in the Senate to Democrats, many of whom
criticize the tax cuts as irresponsibly large and tilted to the
rich. But it's not clear if Jeffords will switch before the tax
bill becomes final.

Senate Democrats, powerless to stop the tax bill, offered more
than 50 amendments that delayed passage by two days.



Todd Shields (tshields@editorandpublisher.com) is the Washington editor for E&P.



Copyright 2001, Editor & Publisher.