Wall Street Journal:  House Eyes Temporary Measure To Prevent Estate Tax Repeal, by Martin Vaughan:

The House of Representatives is likely to propose a temporary, one-year measure to prevent repeal of the estate tax, as time is running short for a bipartisan group of senators to agree on a permanent rate by the end of this year.

Democrats are determined not to see the estate tax repealed, which according to tax cuts passed under President George W. Bush will happen on Jan. 1, if Congress does not act by the end of the year.

The House will likely propose to scrap the one-year repeal and instead extend 2009 estate tax rates for an additional year, according to congressional aides. At current levels, the first $3.5 million of estate wealth is exempt from the tax. Above that amount, wealth is taxed at a 45% rate.

Some Washington lobbyists say that despite the House position, there is still a chance for Senate Republicans and Democrats to strike a deal this year for a permanent rate structure that is more favorable to wealthy taxpayers. Sens. Blanche Lincoln, D-Ark., and Jon Kyl, R-Ariz., in April won support from a majority of the Senate including 11 Democrats for an amendment that would have exempted estates under $5 million and set a 35% rate. "Somewhere between those two rates and two exemption amounts, there is a deal, " said Mel Schwarz, legislative affairs partner at accounting firm Grant Thornton LLP. …