As Josh noted this morning, Washington Sens. Maria Cantwell (D-WA) and Patty Murray (D-WA) both voted for a budget proposal Friday that would raise the ceiling on the estate tax--under the amendment, the exemption is raised from $7 million to $10 million per couple, and the top tax rate is lowered from 45 percent to 35 percent.

This morning, the offices of both senators told PubliCola they are in favor of reforming the tax à la the budget amendment in order to reduce some financial strain on small businesses. "Small businesses are hurting and we need to make sure they're protected," said Murray spokeswoman Alex Glass.

Sen. Cantwell voted yes on the bill because she was eager to see some compromise on the estate tax issue, her office said. "[Cantwell] believes we need reasonable reform of the estate tax so [small businesses] won’t have to worry about the future of their orchard, farm, or tree grove," Cantwell spokeswoman Ciaran Clayton told PubliCola. "Senator Cantwell’s position has always been clear: she favors reasonable estate tax relief as part of a fiscally responsible balanced tax system."

Contrary to Cantwell and Murray's argument, the Center on Budget and Policy Priorities (CBPP) says the measure would only effect 0.2 percent of small businesses, defined there as businesses valued at less than $5 million. The CBPP also reported that the new proposal would cost the government 77 percent of what a full repeal of the tax would--almost $250 billion in lost revenues. Neither Cantwell nor Murray support a full repeal of the tax.

The measure will have the greatest impact on wealthy folks like Seattle Times publisher Frank Blethen, who unsuccessfully lobbied both Murray and Cantwell to vote for a repeal of the estate tax in 2006. That same year, voters here rejected a measure that would have repealed Washington State's estate tax.

The amendment will be considered again by a conference committee of House and Senate members before the budget is approved. An amendment added to the Senate budget by Sen. Richard Durbin (D-IL) (and voted for by Cantwell and Murray) delays the implementation of the estate tax adjustment until a measure that cuts taxes for those making less than $100,000 is also passed.