The Senate pro-repeal side suffered a blow June 8, when it came up three votes short of the 60 needed to end debate on the bill. The House had passed its permanent repeal measure in April 2005. Sen. Jon Kyl (R-Ariz.) and others who back repeal had hoped to offer an alternative that would widen the number of estates exempt from the tax and trim rates paid by the wealthiest Americans.
Under current law, estate taxes phase out until 2010, when they will be completely repealed. But in 2011, the tax will be reinstated for estates worth more than $1 million.