Democrats' Opposition to the White House Tax Deal

Strategic Insights -

As the Senate prepares for a test vote on the White House tax compromise, Democrats in both chambers are weighing their options on the estate-tax provision. House progressives are planning to fight the deal, while Republicans are refusing to consider any changes or scuttling the deal. Representative Chris Van Hollen, chairman of the Democratic Congressional Campaign Committee, joins MSNBC's "The Daily Rundown" to discuss the Democratic opposition to the deal.

In a recent interview, Van Hollen clarified that the House Democratic leadership is not opposed to debating the tax deal but is concerned about the estate-tax provision. He stated that the provision, which benefits 6,600 estates at an average benefit of $1.8 million, adds $25 billion to the deficit over two years. Van Hollen emphasized that this provision is an unnecessary giveaway at a time when the country is facing big deficits.

Van Hollen also revealed that he intends to vote against the deal if the estate-tax provision remains unchanged. He argued that the House and Senate should have a clear debate on this issue and challenged Republicans to consider the merits of the compromise. Van Hollen pointed out that doing nothing on the estate tax would revert the tax rates to pre-Bush levels, with a $1 million exemption and a 55% tax rate on everything above that.

Key Takeaways

  • The Democratic Congressional Campaign Committee is opposed to the White House tax compromise due to the estate-tax provision, which adds $25 billion to the deficit over two years.
  • Representative Chris Van Hollen, chairman of the DCCC, intends to vote against the deal if the estate-tax provision remains unchanged.
  • Van Hollen argues that the provision is an unnecessary giveaway at a time when the country is facing big deficits.
  • The House and Senate should have a clear debate on the issue, and Republicans should be willing to consider changes to the deal if it means holding up tax relief for millions of Americans.
  • If the estate-tax provision is left unchanged, it would benefit 6,600 estates at an average benefit of $1.8 million.
  • The compromise on the estate tax was made behind closed doors between the administration and Senate Republicans, without input from the House.
  • Van Hollen believes that the negotiations were useful for understanding the elements of the deal but were not effective in making trades or securing concessions.

Statistics

  • The estate-tax provision adds $25 billion to the deficit over two years.
  • The provision benefits 6,600 estates at an average benefit of $1.8 million.
  • If the estate-tax provision is left unchanged, the tax rates would revert to pre-Bush levels, with a $1 million exemption and a 55% tax rate on everything above that.
  • The compromise on the estate tax was made behind closed doors between the administration and Senate Republicans, without input from the House.

Sources

  • MSNBC's "The Daily Rundown" interview with Representative Chris Van Hollen, December 13, 2010.