Timber Becomes Tool in Effort to Cut Estate Tax

Hey, I know, let's give away money our government doesn't really have to multi-national companies, and help politicians get re-elected. Win-win! Except for the rest of us, and the trees, but we don't have lobbyist groups.

Timber Becomes Tool in Effort to Cut Estate Tax

House Republicans hope a tax cut for timber companies will win Democratic support for their latest attempt to reduce the estate tax.
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The provision would reduce the corporate capital gains tax, which is assessed on sales of timber, to about 14 percent from 35 percent. Two of the timber industry's strongest advocates are the Democratic senators from Washington — Patty Murray and Maria Cantwell — who both voted with other Democrats against blocking a filibuster on the estate tax.

The Weyerhaeuser Corporation, the giant paper and forest products company, is based in Federal Way, Wash., and the state is a major timber-producing area.

Other Democratic Senators — Mark Pryor and Blanche Lincoln of Arkansas and Mary L. Landrieu of Louisiana — were co-sponsors of a similar timber tax cut last year.

But James Manley, a spokesman for Senator Harry Reid of Nevada, the Senate Democratic leader, said most Democrats would oppose the new compromise as vehemently as the previous proposals.

“If there's a bill that is fiscally responsible and fair to the middle class, then we're for it,” Mr. Manley said. “But this bill would cost well over $700 billion in the first 10 years after it takes effect and it would only benefit the wealthiest individuals and households.

Tags: tax