Spitzer: 6,600 families may get $25 billion gift

Today's NUMBER OF THE DAY is $25 billion

 That’s the cost of lowering the estate tax from 45% (and exempting inheritances under $3.5 million—the provision in the House bill) to 35% (and exempting estates up to $5 million—the provision in the compromise bill the Senate will vote on today).

That’s a $25 billion gift going to a mere 6,600 families who will benefit from the change — and a $25 billion increase to the deficit.

In total, the estate tax, which was initially set to be restored in 2011 at a rate of 55%, will cost $68 billion.

 Just to put it in perspective, the additional $25 billion is six times what we’re spending on Race to the Top and three times what was allocated in the stimulus to build high-speed rails.

To top it off, we’re going to borrow the money – a lot of it from China.

For more on the story...

House Democrats will allow a vote on the tax compromise reached by President Barack Obama and Republicans but will try to change the deal, especially an estate tax provision they believe is beneficial to the wealthy, one of their leaders said Sunday.

Rep. Chris Van Hollen of Maryland, who heads the Democratic Congressional Campaign Committee, told reporters that the package will get a vote in the House despite a threat by House Democrats last week to prevent it from reaching the floor.