House to Obama on Tax Agreement – No Go!

The House has decided not to vote on the tax cut agreement Obama reached with Republican leaders earlier this week.  Particularly objectionable was the proposed $5 million estate tax exemption.  From CNN.com:

“According to several Democratic members and aides, much of the discussion focused on the addition of the estate tax provision to the package. The estate tax is scheduled to be reinstated at a higher rate of 55% next year, with the exemption up to $1 million.

A bill that passed in the House a year ago set the threshold for the exemption at $3.5 million and the tax rate at 45%, while the provision in the tax deal exempts estates up to $5 million and sets a lower rate.”