U.S. House of Representatives votes to repeal the federal estate tax (again).

For the fourth time in four years, the House voted to repeal the federal estate tax permanently, a central element of President Bush's economic agenda, but once again the measure stands little chance in the Senate.

Republicans scheduled the votes in the week when income tax returns are due to call attention to their opposition to taxes.

This year, the Democrats added a new twist to their case. With President Bush barnstorming the country in an effort to convince Americans that the Social Security system is on the verge of insolvency, Democrats are now arguing that the tax revenue saved by retaining the estate tax on just the largest three-tenths of 1 percent of estates would offset at least a quarter and possibly as much as half of the Social Security shortfall over the next 75 years.

(4-14-05, The New York Times.)

According to today's Washington Post, by a 194 to 238 vote, the House rejected a Democratic counteroffer, which would have shielded $3.5 million of an estate's value from taxation, enough to exempt 99.7 percent of estates from the inheritance tax (that exemption figure can be doubled for a couple with minor estate planning, meaning that the couple would pay no tax unless together they owned in excess of $7 million).