Conservative opponents of the tax deal argue that it's better to start over in January with a new GOP House majority. --------
One reason for the House Democratic revolt against the tax deal is the 35% death tax provision. House Speaker Nancy Pelosi has said that the liberal caucus, which is interchangeable with the Democratic caucus, wants a 45% or 55% rate.
Meanwhile, conservatives are rebelling against the tax compromise for the opposite reason. They want a much lower rate, and some are insisting on total abolition. The American Family Business Institute, a leading opponent of the estate tax, said Wednesday that a rate of 35% is unacceptable. According to the group's president, Dick Patten, "even a 35% rate loses nearly one million jobs."
John Fund says House Democrats are trying to rewrite President Obama's deal and raise the death tax rate.
Senator Jim DeMint of South Carolina has announced that he will vote against the bill, in part because the death tax "is raised from zero to 35%." And there may be as many as 30 to 35 House Republicans who vote "no" because of the death tax revival and other concerns, according to House whip calculations.
A coalition of conservative leaders led by Brent Bozell, head of the For America grassroots group, issued a press release Thursday that criticized "the revival of the death tax and a costly extension of unemployment insurance that is still not paid for." His group is urging a "no" vote on the deal.
Republican Senator Jon Kyl of Arizona orchestrated the compromise on the death tax, which is zero today but rises to 55% next year if Congress doesn't act. "This is the best deal we could get on the death tax with this president," said a Senate aide. "The alternative was to go to 55%."
Mr. Bozell and other conservative opponents of the tax deal argue that it's better to start over in January with a new GOP majority in the House. If Nancy Pelosi and her minions have their way, Mr. Bozell's wish may come true.
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