The House passed the bill on the permanent repeal of the estate tax after 42 Democrats and 230 Republicans voted for the proposal. The approval was given to the repeal of the tax that is now to disappear in 2010 and be renewed in 2011.

«Now the ball is in the Senate’s court," said Rep. Kenny Hulshof (R., Mo.), the chief sponsor of the bill. At the moment the Senators are talking over a compromise concerning the bill.

"I really sense that we are picking up some momentum," said Sen. Ron Wyden (D., Ore.), a participant of the negotiations.

Republicans have been pushing for a full repeal of the so-called "death tax," and are prepared to compromise with a law that exempts a $10 million estate from the tax and brings the rate down to 15% tax, identical to the tax on capital gains. Democrats, in contrast, have been pointing to surging federal deficits, and push for a higher rate and a lower exemption from the tax.