The long run-up to legislative action in the Senate on the estate tax appears to be coming to a close. The day before the chamber recessed in July, Majority Leader Bill Frist (R-TN) filed a motion to proceed to consider H.R. 8, the House passed estate tax repeal bill. This bill will be one of the first items the Senate is expected to take up when it returns in September, and it is quite likely that this repeal bill will ultimately serve as a vehicle for a bad estate tax reform proposal by Sen. Jon Kyl (R-AZ). If Frist were to bring H.R. 8 to the Senate floor, the Democrats could debate the bill to death. The only procedure by which the Senate can vote to place a time limit on consideration of the bill, and thereby overcome a filibuster is through a cloture vote. Under the cloture rule, the Senate may limit consideration of a pending matter to 30 additional hours, but only if there are 60 votes. Therefore, defeating cloture is a key step to block efforts to repeal the estate tax or prevent enactment of an irresponsible estate tax reform. A vote on cloture is usually a party-line vote, because it is viewed as a vote on procedure rather than on substance. Therefore, the cloture vote will probably garner the support of all 55 Republican Senators — even though some of them oppose repeal of the estate tax. Because this cloture vote will ultimately allow proceeding with debate on H.R. 8, in many ways it is equivalent to a vote for repeal since it will be much more difficult to prevent the enactment of repeal or a bad reform option after the debate has begun. In fact, some conservative organizations have announced they are viewing this cloture vote as equivalent with an up or down vote on full repeal. It is still unclear whether Frist is sincere in his intention to hold this vote or if he is continuing to use a threat of a vote to motivate Democrats to reach a compromise in on-going negotiations during the August recess. Throughout this year, Frist has repeatedly threatened to bring the estate tax issue on the floor because he and other Republicans were frustrated with the pace of negotiations between Kyl and a handful of Democrats lead by Sen. Max Baucus (D-MT). Irresponsible Reform Kyl has a plan to "reform" the estate tax by lowering the maximum estate tax rate to that of the capital gains tax rate, currently 15 percent. Republicans have a long-term agenda to repeal the capital gains tax. Kyl is less concerned about the amount of money exempted from the tax since the main advocates of repeal are generally so wealthy that even a large exemption will not lower their tax bills significantly. Those families and coporations will save tremendous amounts of money, however, by lowering the tax rate. Current law permits the first $1.5 million of the estate to be inheireted tax free. That amount is scheduled to rise to $3.5 million in 2009. (The amounts are doubled if married.) If Kyl proposes a $3.5 million exemption and a 15 percent tax rate, it would mean an 80 percent decrease in revenue, effectively killing the estate tax. This would have adverse impact on charitable giving, on revenue collected at the state level, and provide a major shift in fundamental values that have guided this country since its founding. Some fear if Frist wins the vote on cloture, it will become clear very quickly there are not 60 votes to pass H.R. 8. But with limited time already permitted on H.R. 8, Frist could shift to a reform option such as Sen. Kyl's. Since these issues are quite complex, it is possible some Senators might vote for "reform," thinking it is the best option. Action Needed to Preserve the Estate Tax As Vote Approaches Regardless of Frist's intentions, it is expected forces on both sides of this issue will ramp up efforts to influence Senators by launching media and advertising campaigns and by mobilizing constituents to share their views with their Senators. United for a Fair Economy and the Coalition for America's Priorities will be working to place pro estate tax advertisements in target states leading up to the vote in September. It will also be even more important for individual supporters of the estate tax to take action. The Americans for a Fair Estate Tax coalition, chaired by OMB Watch, and Fair Taxes for All, a coalition of which OMB Watch is part of, are ramping up efforts to defeat the cloture vote. Below are ways for concerned citizens to take action to preserve the estate tax:

• Send a letter to your Senators urging them to vote NO on cloture and reject repeal or irresponsible reform options.
• Use the August congressional recess to meet with your Senators while they are at home in the state to express your support for the estate tax.
• Send a Letter to the Editor of your local newspaper using USAction's online submission tool.
• Use these talking points in your organization's media work, in letters and visits with Senate offices, with friends, family, and co-workers, and anyone else who needs the real facts and information about the estate tax debate.