The House plans to take up estate tax reform as early as tomorrow with a vote on Rep. Earl Pomeroy's (D-ND) Permanent Estate Tax Relief for Families, Farmers, and Small Businesses Act of 2009 (H.R. 4154). The Pomeroy bill would permanently extend current estate tax law at a $7 million exemption for couples at a 45 percent rate. Without congressional action this year, the estate tax will expire in 2010 and then come back in 2011 under its pre-Bush tax cut levels of a $2 million exemption for couples at a 55 percent rate. OMB Watch has submitted a statement of support to Rep. Pomeroy's office, and several other non-profits have come out with reports to back up the legislation.

The Center on Budget and Policy Priorities (CBPP), a non-profit fiscal policy institute, released a report yesterday questioning the accuracy of two recent reports from the American Family Business Foundation (AFBF) that claim repeal of the federal estate tax could create upward of 1 million jobs relatively cost free.

The implication is that upon the death of an owner, estate taxes typically devastate small businesses and the jobs they provide. That is swill.

Well, the U.S. Senate is a mysterious thing. The Lincoln/Kyl estate tax amendment to reward the children of multi-millionaires passed last night - 51 - 48. But there's a caveat. The Senate also passed an amendment from Sen. Richard Durbin (D-IL) that prohibits any estate tax cuts called for in the Lincoln/Kyl amendment unless an equally large tax cut is passed for Americans making under $100,000 per year. That amendment also passed 56 - 43. Even Lincoln voted for Durbin's amendment (I guess she just really likes tax cuts?). I think on a procedural level this amendment does help a bit. While the Durbin amendment doesn't negate the Lincoln/Kyl amendment, it does make it a bit harder to develop legislation that would actually enact a change in the estate tax that is called for under the Lincoln/Kyl amendment.