House Votes to Repeal Estate Tax

Last week, the House voted to repeal the federal tax levied on estates worth more than $5.43 million for an individual or $10.86 million for a couple. Estates valued at levels higher than these are taxed at rates of up to forty percent. The vote came out to 240 to 179; as expected, it was divided largely on party lines. In reality, though, this tax will almost definitely remain on the books. Even if the Senate voted in its favor--which is extremely unlikely--the President would certainly veto it.

Republican opponents of what they refer to as "the death tax" argued that farmers and small-business owners were unfairly burdened. John A. Boehner, the House Speaker, argued that it deprived them of the opportunity to pass something on to their children and grandchildren. Proponents of the estate tax, however, argued that repealing it would cost the Treasury $14.6 billion in the year 2016 alone, and $269 billion over 10 years.

At the end of the day, though, the tax's repeal would offer little for the majority of Americans. It only accounts for 0.2 percent of deaths anticipated in the United States.