House votes another tax break for the upper 0.2%

Hypocrisy and shamelessness.   While even some of their Republican colleagues give lip service to the problem of income inequality, the House Republicans just voted to make life a little bit sweeter for the top 0.2% of wealthy Americans.

The House voted 239 to 179 for a bill that would eliminate estate taxes.   Because of already very high deductibles, only estates over $5.4 million ($10.9 million for couples) are subject to the tax -- estimated to affect only the upper 0.2%.

That decimal point is not out of place.  It is not the upper 2% but the upper upper 0.2%.  The other 99.8% of Americans do not have large enough estates to owe any estate taxes.

Most Democrats voted against it, and some had scathing comments for the bill.  "Today's vote to repeal the estate tax is just the Republican's last attempt to tilt the U.S. tax code in favor of their ultra wealthy campaign donors" (Rep. Jim McDermott (D-Wash.)  "Today my Republican friends have discovered there’s $270 billion of revenue that somehow the federal government no longer needs" (Rep. Earl Blumenauer (D-Ore.) “They have decided to give an additional tax cut to people who need the help the least."

Republicans' defense of the bill focused on calling the tax immoral because it "prevents families from passing businesses and farms down to their children."    Let's stop the crocodile tears.   No one who inherits a $5.4 million estate is going to be losing the family farm or the family owned corner grocery.   Think, instead, of vast real estate holdings, stock portfolios, multiple homes in luxurious places, yachts and private airplanes.

Besides, the effective top estate tax rate has already been reduced by loopholes to 17% -- far less than most people pay on their hard earned salaries.

As if this hypocrisy weren't enough, Rep. Christie Noem (R-N.D.) even tried to blame the current income inequality on President Obama.  "One-in-five children are on food stamps because of the policies of this administration. Fifty percent of our college students can’t find work or are underemployed because of the policies of this administration. . . .  We talk about income inequality, and we are seeing it because of those previous policies. This tax is a very unfair tax."

I honestly cannot even imagine the tortured (non)logic that would explain that talking point.  If anyone can, please explain it in a comment to this ShrinkRap post. 

Fortunately, the bill likely will not get the 60 votes needed in the Senate (thanks to the Republicans teaching Democrats how to use the filibuster to thwart the other side) -- and, as a backup, a veto by the president. 

Ralph