Leave your feedback Share Copy URL https://www.pbs.org/newshour/show/the-repeal-of-the-estate-tax-ignites-debate-in-congress Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter Transcript The Senate has been debating the possible repeal of the tax on high-value estates that are to be handed down to heirs. If Congress does not act, the threshold for qualifying for the tax will rise to $3.5 million for an estate and continue increasing until 2010, when it returns to pre-2002 rates. Read the Full Transcript Notice: Transcripts are machine and human generated and lightly edited for accuracy. They may contain errors. RAY SUAREZ: Members of the families that own Wal-Mart, make Snickers candy bars, and make Gallo wine have been paying close attention. Maybe your family hasn't been watching the Senate heat up over repealing the estate tax.SEN. BARACK OBAMA (D), Illinois: Let's call this a trillion-dollar giveaway what it is. This is the Paris Hilton tax break. It's about giving billions and billions of dollars to billionaire heirs and heiresses at a time when American taxpayers can't afford it. RAY SUAREZ: The debate is simple: Should the largest estates in this country be taxed when they're passed onto heirs? Under the current law, only people with a net worth of at least $2 million are taxed, or about 12,000 estates this year.Today, the Senate began debate on cutting or possibly repealing the estate tax altogether. Advocates of repeal, like Senator John Cornyn of Texas, often refer to it as the "death tax."SEN. JOHN CORNYN (R), TEXAS: Once you earn income and pay taxes on your income, then Uncle Sam comes along, when your loved one is lying on their death bed, and says, "We want another bite." RAY SUAREZ: Senator Cornyn said the tax was unfair, hurts American businesses, and breaks up ranches and farms. SEN. JOHN CORNYN: Some advocate keeping the death tax in the IRS code as the key to opening the door of fiscal discipline. I disagree. Following this path with lead to nowhere and lead there fast. What it will do instead is to slam the door on ranchers, and farmers, and family-owned businesses, and that's not something that I'm prepared to do. RAY SUAREZ: Many Democrats argued that, at a time of war, inflation, and a growing budget deficit, the country can't afford to give a tax break to a small number of wealthy families. Senator Kent Conrad of North Dakota.SEN. KENT CONRAD (D), North Dakota: Are we really going to take on a trillion dollars of addition debt in order to help a handful of very wealthy people who really don't need the help?