Rep. Jerry McNerney’s proposed increase in the estate tax exemption for family farms and small businesses is half a loaf, which, to someone who is hungry for tax relief, is better than nothing. However, we would prefer the elimination of the so-called death tax, which Richard Pombo, R-Tracy, championed during his 14 years in the House.

Guess how far Pombo and the Republican majority got in the last 12 years? They got the entire estate tax repealed in 2010, but it then reverts back to the $1 million exclusionary level of 2002.

McNerney, a Pleasanton mathematician, was one of 30 Democratic freshmen to take a Republican seat. It was logical to show off his moderation on this tax-and-spend issue by introducing the legislation with a media conference call. It earned the congressman not only coverage within the 11th District, “McNerney seeks estate tax relief,” in the Contra Costa Times, but also a flattering headline story in the Sunday Los Angeles Times, “He’s proving his worth one weekend at a time.”

The “Family Farm, Small Business and Home Tax Relief” would immediately raise the estate tax exemption from $2 million for farms and businesses to $8 million and exclude from estate taxation as much as $2 million for the family home. Under the 2001 tax act, the exemption reaches a maximum of $3.5 million in 2009.

McNerney’s tax relief is significant, although it will be up to the House Ways and Means Committee and the Government Accountability Office to say how much.

And it will be up to the House bean counters to figure out how the federal government will pay for this revenue loss. We shouldn’t expect anyone to trim government services to pay for the tax break. Since the 1960s, no one has the intestinal fortitude to budget properly. Tax-and-spend has simply become spend. Instead, McNerney must retain the pay-as-you-go accounting principles adopted by the House this session to balance his measure.

Of course, since this half-loaf legislation is stamped with “Made on Capitol Hill,” critics call it an election tactic that won’t make it out of committee, but will be printed on glossy campaign mailers.

It’s a good starting point and probably the best compromise possible. For some middle-class families, it could mean the difference of having to sell off the farm or business or not.

Maybe the legislation is half-baked, but it’s a loaf nonetheless. If McNerney gets it through Congress, it will be a victory for small family businesses of all kinds.