House Ways and Means Committee Democrats have agreed to back a one-year extension of current estate tax levels, and tie it to a broader overhaul of the tax code in 2010. It is believed that move would spare Democrats from endorsing a tax cut for the wealthiest few families during a time of double-digit unemployment.
Representatives John Larson, D-Conn., and Richard Neal, D-Mass., the direction Democrats are heading is clear. A one-year extension would make the estate tax levels expire at the same time as many other provisions in the tax code, potentially giving members an opportunity for a broader rewrite of the revenue structure.
Ways and Means Committee member Earl Pomeroy, D-N.D., warns that the push for a one-year extension might falter in the broader Democratic caucus. He has threatened to vote against the rule that would bring such a bill to the floor and said other members of the fiscally conservative Blue Dog Caucus might do the same.