Bernie Sanders's new plan to supercharge the estate tax, explained

[Hassin Bin Sober]

Bernie Sanders’s new plan to supercharge the estate tax, explained

https://www.vox.com/2019/1/31/18205294/bernie-sanders-estate-tax-99-percent


Bernie Sanders, the Vermont senator and not-quite-yet 2020 presidential candidate, is unveiling a proposal to dramatically expand the estate tax, which has withered considerably over the years, at the same time as Senate Republicans are working to eliminate it entirely.

His new proposal, which he calls the “For the 99.8 Percent Act,” would leave the vast majority of estates untaxed while creating a graduated rate structure for the estates of the very rich, topping out at a maximum rate of 77 percent. In terms of its policy impact, this would be broadly similar to Sen. Elizabeth Warren’s wealth tax proposal, though the implementation details of course differ (and one could, in theory, do both).

The two plans pursue different routes to essentially the same goal — raising revenue from the richest and deterring the accumulation of vast dynastic wealth. But both senators are laying down a clear marker that they want the vast fortunes of the richest Americans to be a key source of future revenue.

Sanders’s estate tax proposal, explained

Until recently, US tax law allowed rich people to pass down $5.5 million untaxed to their heirs. But the 2017 Trump tax bill doubled that exemption to $11 million. Earlier this week, Senate Republicans introduced legislation to eliminate the estate tax entirely thus allowing billions to pass tax-free from today’s rich people to their children.

[TexasBushwhacker]

1. So someone with a $1Billion estate could only pass on

$230 Million to their heirs. I'm cool with that!

[FoxNewsSucks]

3. Me too

If they want a bigger windfall they can just buy a powerball and take their chances like the rest of us

[muriel_volestrangler]

4. No, they'd be able to pass on $454.575 million

77% is the marginal tax above $1 billion. Before that:
Pass on 100% of $3.5m
Pass on 55% of ($10m-$3.5m) = 6.5m*.55 = $3.575m
Pass on 50% of ($50m-$10m) = 40m*.5 = $20m
Pass on 45% of ($1bn-$50m) = 950m*.45 = $427.5m
Total: $454.575m

[TexasBushwhacker]

5. You are so right

So they really have nothing to bitch about.

[Hassin Bin Sober]

6. But they will bitch and moan.

Because they feel rich kids should skate through life and never have to pay a dime of income tax on their vast earnings.

[Jeffersons Ghost]

2. K&R for a 5th rec n/t