House Passes Estate-Tax Repeal

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he House voted to repeal the estate tax on inherited wealth, which could cut as much as $290 billion in government revenue over the next 10 years, Bloomberg reported.

The House approved the measure Wednesday by a 272-162 vote. President Bush called for repeal of the 90-year-old estate tax — which Republicans call the "death tax" — in his 2006 budget proposal.

But concern about rising deficits may spur a compromise in the Senate, retaining the tax on only the very wealthy, Bloomberg said.

epublicans favoring repeal are pushing to make permanent a measure passed four years ago that phases out the tax until it is eliminated completely in 2010, Bloomberg said.

If no change is made, the tax will return in 2011 at its original level, with estates worth more than $1 million taxed as much as 60%, Bloomberg said.