Bernie Sanders Calls For 65% Top Estate Tax Rate

[Jefferson23]

June 25, 2015

U.S. Presidential hopeful Sen. Bernie Sanders (I-Vt.) called today for lowering the amount individuals can shield from the federal estate tax, and hiking estate tax rates across the board, as he introduced the Responsible Estate Tax Act. “This is a piece of legislation that addresses what I consider to be the most significant moral issue of our time,” he said at a press conference in Washington, D.C., citing growing economic inequality.

“Inequality is a crisis that threatens our country,” echoed Rep. Jan Schakowsky (D-Ill.), who is sponsoring a companion bill in the House of Representatives.

Sen. Sanders’ supporters listening in on Periscope tweeted: “We are the 99%.” “Got to get this guy elected!” A few skeptics chimed in too: “Well, it’s their money..why can’t they keep it?” “I understand the Walmart family, but if I die with $2 million, am I taxed twice?”

The guy worth $2 million doesn’t have to worry. The Sanders bill, a rewrite of a bill he introduced in 2010—the year the estate tax lapsed under the Bush tax cuts — would exempt the first $3.5 million on an individual’s estate from estate tax. (A married couple could shelter $7 million.) That’s a huge drop from current law, a “permanent” $5 million exemption, indexed for inflation, brokered effective Jan. 1, 2011. For 2015, the individual exemption is $5.43 million ($10.86 million for a married couple). Still just 3 out of every 1,000 people who die would be subject to estate tax under the Sanders bill, compared to 2 out of 1,000 now. The higher the exemption, the more people don’t pay estate tax.

in full: http://www.forbes.com/sites/ashleaebeling/2015/06/25/bernie-sanders-calls-for-65-top-estate-tax-rate/

[Kalidurga]

1. Ha ha

You have to chuckle at all the people who will never have to worry about paying a dime more in taxes than they already do get the vapors over someone that will have to pay 65% on a small portion of their income.

[cascadiance]

2. Bernie, if you are reading this, ALSO get rid of capital gains liability loopholes too!

I was just telling some people working on propositions here in Oregon last night that this is one they should do here, as there is a BIG loophole that loses them around $2 billion in tax revenue primarily that is given to the wealthy. In this state as probably in many other states, they are losing a lot of tax revenue to the very wealthy that intentionally put their high capital gains liability in to an estate that they never touch so that their heirs never get taxed on this capital gain. People that aren't wealthy aren't able to control their investments and when they sell them so much to take advantage of this loophole. Perhaps you could have some base level of liability that has some tax break for those that families and heirs that aren't that wealthy so that they don't get a big tax bill with this as well. In any case, it seems fair that the inheritor pays the unrealized capital gains tax, or keeps the asset as one that hasn't been realized just yet, but still retains the original basis of value to provide proper capital gains tax.

http://www.ocpp.org/2012/07/18/blog20120718_Oregon-estate-tax-2-billion-loophole/

Now Obama was going to have this kind of trust fund loophole just for families at the federal level, which again would allow people like Paris Hilton get that much more wealthy without doing anything as this article notes.

http://www.forbes.com/sites/janetnovack/2015/01/20/obama-attack-on-trust-fund-loophole-could-increase-tax-advantage-of-trusts/

Bernie should make it a priority to help get rid of these sort of loopholes nationwide that primarily only benefit the rich.

[Jefferson23]

8. +1..hope to hear more about this, thank you. n/t

[daleanime]

14. +1

[Cosmocat]

3. Thank you

for putting this out, Bernie ...

[rhett o rick]

4. Once again Sen Sanders sides with the people and not the billionaires. nm

[sadoldgirl]

5. Good, it is about time.

And go after the capital gains tax for people with 2M or more.

It is absolutely essential to point out at which amount those
taxes would start though.

[Fumesucker]

6. That sound you just heard...

Ten thousand multi millionaires calling their Congressmen they have on speed dial.

[Jefferson23]

9. Yep. I have no doubt they're watching him. n/t

[Sancho]

7. Nice politics, but probably won't have any tangible effect.

As already mentioned, capital gains and other loopholes are rampant. You may have some large farms in Texas that get taxed, but most of the wealthy are already well versed in trusts, overseas havens, tax-free investments, etc., etc.

It's a "moral issue" but almost worthless in $'s unless the entire system is overhauled.

[cascadiance]

10. I think Bernie would be the candidate that would prioritize this sort of thing happening though.

I think he wanted to start simple by pointing out that we could start with a simpler solution of an overall higher tax rate.

But yes, we do need a general overhaul that would reflect what he's trying to do as he is stating in simple terms here that would clean up the loopholes as well.

The same goes with corporate taxes as well. It's one thing to say how much their rates should be, but we also need to really clean up the loop holes there too.

[azmom]

12. Bernie would at least propose it, and

Talk about it. Hillary won't

[bvar22]

11. If the USA claims to be a democracy and a meritocracy,

....the Estate Tax is the fairest ALL American taxes.

If I die with a Billion Dollars, I want it to go back to where it came from so others who deserve it can excel,
and not some worthless trust fund babies.


On one of the Talking Head Shows,
James Carville claims he is leaving each of his kids $3MILLION,
and if they can't make it on THAT, its their problem.

[Jefferson23]

13. Great post. n/t