US Senate majority backs windfall for the rich through repeal of estate tax

Senate Majority Leader William Frist (Republican of Tennessee) had refused to allow a vote on anything less than 100 percent repeal until after the vote to impose cloture and cut off debate. When that vote failed, Frist indicated another vote would be scheduled later in the year, either on the same bill or on one that would continue the estate tax but at a sharply reduced rate. Outright repeal would cost the Treasury an estimated $776 billion over ten years, while the “compromise” versions would shower $652 billion and $550 billion respectively on the richest Americans.

Only two Republicans, Lincoln Chafee of Rhode Island and George Voinovich of Ohio, broke with the Republican majority on estate tax repeal. Four Democrats sided with the Republican majority and voted to cut off debate: Ben Nelson of Nebraska, Blanche Lincoln of Arkansas, Max Baucus of Montana and Bill Nelson of Florida.

The estate tax is paid only by a handful of wealthy families—only three out of every 1,000 estates exceed the current $4 million threshold. The repeal drive has been spearheaded and financed by 18 billionaire families, including the Waltons of Wal-Mart, who have spent over $200 million lobbying to preserve and expand their colossal share of the national wealth. Among the 18 families are the Dorrances, owners of Campbell Soup, the Mars candy family and the Gallo wine family.

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http://wsws.org/articles/2006/jun2006/tax-j09.shtml