Surprise, Surprise

by digby

I know that you’ll be shocked to hear this but the deficit hawks are all turning into fiscal doves when it comes to taxing Paris Hilton. Seems they are more concerned about the immediate fate of the children of the wealthy than they are about the fate of any other kids, who they seem to suggest will be living in mud huts and wearing burplap sacks if we don’t do away with social security immediately:

Senate leaders are working on an estate tax deal to make it easier to move a bipartisan jobs bill.

The deal discussed by Senate Majority Leader Harry Reid (D-Nev.) and Senate Minority Leader Mitch McConnell (R-Ky.) involves moving an estate tax bill through the Senate that would prevent a huge hike in the tax from taking effect in 2011, staffers and lobbyists say.

For Reid, it could provide crucial Republican votes for the jobs bill in a Senate where Democrats now have only 59 votes. Republicans would get a vote on legislation to stop the estate tax from returning to a historically high level.

The exact nature of the deal is still subject to negotiations, and the final details of a jobs bill are unclear. But the basic deal would involve Republicans providing enough votes on the jobs bill to give it the 60 votes necessary to clear procedural hurdles in exchange for a vote on the estate tax.

The tax is currently repealed, but barring congressional action it returns next year to pre-2001 levels by socking estates worth more than $1 million with a tax that tops out at 55 percent. Republicans and more than a few Democrats oppose this level and prefer rates set in 2009, when estates worth over $3.5 million were taxed at a top rate of 45 percent.

Lobbyists say the Reid-McConnell talks have been fruitful, but historic snows in Washington have delayed a final decision on when an estate tax fix might move.

A Senate vote on the House-passed bill is one alternative for getting Republicans to support a jobs package.

In December, the House passed legislation (H.R. 4154) making permanent 2009 estate tax rules, which costs a whopping $233.6 billion over 10 years.

While Republicans favor a consistent tax over one that is temporary, they also prefer a lower rate than 2009 levels as well as higher exemption levels than 2009 law that would be indexed for inflation.

So, you see, they are making a huge sacrifice in this negotiation by agreeing to merely extend the Bush tax cuts instead of getting what they really want which is for the estate tax to be eliminated completely. What a wonderful bipartisan gesture on their part.

But then we know what they think about bipartisanship, don’t we?

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