Estate tax repeal bill blocked in Senate
WASHINGTON (Reuters) - The U.S. Senate on Thursday killed a bill backed by President George W. Bush that would have permanently repealed estate taxes. The Senate vote of 57-41, mostly along party lines, was three shy of the 60 needed for the measure to advance. The House of Representatives had previously passed a bill to wipe out what Republicans call the "death tax." Republican backers had acknowledged they were short of votes for full repeal, but they had hoped for an election-year debate and planned to offer an alternative that would have reduced the tax rate and exempted all but the wealthiest estates from the tax. Democratic opponents argued that full repeal of would cost the federal treasury about $1 trillion over the next decade. Many Democrats who voted against consideration of the bill said they were open to compromise but objected to an alternative being offered by Republicans. Sen. Jon Kyl, an Arizona Republican and leading advocate for repeal, said Republicans wer...