House rejects change to estate tax

[December 17, 2010]  WASHINGTON (AP) -- The House has rejected a move by Democrats to raise the estate tax above levels agreed to by President Barack Obama and Republicans.

The attempt failed 233-194 late Thursday shortly before a scheduled final vote on legislation to prevent income taxes from going up on Jan. 1 for millions.

Democratic critics said the deal between the president and Republican leaders amounted to a giveaway to the very rich. They said their proposed change would have exposed an additional 6,600 estates to taxes in 2011, and the government would collect an additional $23 billion over two years as a result.

Republicans argued it was a mistake to raise taxes with the economy struggling to emerge from the recession.

[Associated Press]

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