The Truth About the Estate Tax
Happy Friday.
Although not a hot ticket item these days (at least not compared to "Runaway Brides") the Estate Tax remains under assault by the current administration. Their spin mischaracterizes it as the "death tax" and disingenuously claims that it hurts small businesses and farms.
In truth, the estate tax is highly progressive--almost 99% of the tax is paid by the wealthiest 5% of the population. Only estates valued at over $1.5 million dollars are subject to the tax. And, contrary to the spin, only about 0.5% of small businesses and farms face estate tax liability. Simply put, it is a tax on the very wealthy who place less value on their last marginal dollar than the average American earner.
Remarkably, moreover, lowering the estate tax risks reducing philanthropic giving by as much as $15 billion a year!
Of course, in light of all this, the current administration plans to eliminate the estate tax to protect its wealthy base.
In "Options for Reforming the Estate Tax," the authors provide sensible reforms for the estate tax to maintain its progressive impact, protect the revenue stream it generates (in the face of an historic deficit), and promote charitable giving. Especially important considerations in the face of tax and spend republicans.
Although not a hot ticket item these days (at least not compared to "Runaway Brides") the Estate Tax remains under assault by the current administration. Their spin mischaracterizes it as the "death tax" and disingenuously claims that it hurts small businesses and farms.
In truth, the estate tax is highly progressive--almost 99% of the tax is paid by the wealthiest 5% of the population. Only estates valued at over $1.5 million dollars are subject to the tax. And, contrary to the spin, only about 0.5% of small businesses and farms face estate tax liability. Simply put, it is a tax on the very wealthy who place less value on their last marginal dollar than the average American earner.
Remarkably, moreover, lowering the estate tax risks reducing philanthropic giving by as much as $15 billion a year!
Of course, in light of all this, the current administration plans to eliminate the estate tax to protect its wealthy base.
In "Options for Reforming the Estate Tax," the authors provide sensible reforms for the estate tax to maintain its progressive impact, protect the revenue stream it generates (in the face of an historic deficit), and promote charitable giving. Especially important considerations in the face of tax and spend republicans.
posted by Happy Friday | 9:29 AM
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