WASHINGTON - The Senate adopted legislation Friday that would eliminate federal estate taxes within a decade, but not by enough votes to override an expected presidential veto.
Though the bill had bipartisan support, the 59-39 vote on the Death Tax Elimination Act, fell short of the two-thirds majority required to override President Clinton's threatened veto. The bill would gradually cut inheritance taxes each year from their current maximum rate of 55% until wiping them out in 2010. The House passed a similar bill June 9. The estimated cost would be $750 billion by the time they are fully phased out..
An amendment approved Friday -- to raise the limit on contributions to Individual Retirement Accts to $5,000 from $2,000 over three years -- was stripped out at the last minute.