by Sarah Curry
Director of Fiscal Policy Studies
On Thursday the House approved tax measures that would repeal the estate tax and make permanent the state and local sales tax deduction in lieu of the income tax deduction. The state and local tax deduction measure, H.R. 622, passed by a vote of 272-152. The Congressional Budget Office estimates this change would add $42 billion to the deficit over the next ten years; currently nine states have no or virtually no income tax. The estate tax repeal, H.R. 1105, passed by a vote of 240-179 and will impact approximately 5,500 estates each year while costing $269 billion over the next ten years. The White House, objecting to the lack of offsets and lack of middle-class tax relief provided in H.R. 622, indicated through a Statement of Administration Policy that if the bill were presented to the President, his senior advisors would recommend a veto. At this time there are no plans in the Senate to take up either measure.