Hillary released her tax plan Thursday, in which she details how she would tax estates. For the largest estates – worth $500 million and more – she favors taxing them at 65% when they’re passed on from the deceased owner to the next generation. That’s why they call it the death tax. Politicians will tax anything, because they believe they own everything. From Fox Business:
The Clinton campaign changed its previous plan — which called for a 45% top rate — by adding three new tax brackets: a 50% rate that would apply to estates over $10 million per person, a 55% rate that starts at $50 million per person and that top rate, which would affect only those with assets exceeding $500 million for a single person and $1 billion for married couples.
The 65% estate-tax rate would be the highest since 1981 and marks one of the most enormous tax-policy gulfs between Mrs. Clinton and Mr. Trump, who would repeal the tax.
Neither of their proposals stands much chance of succeeding in a divided Congress where Republicans control the House and Democrats can block action in the Senate. The current top rate of 40% was set as part of a bipartisan compromise in January 2013, and the first $5.45 million per person is exempt from tax.
Last year, Republicans attempted to eliminate the death tax on estates worth $11 million and more, a plan that was criticized by the Obama administration, because it would have affected only the top 0.1 percent of taxpayers.
It’s true that eliminating estate taxes solely on big inheritances would only affect a small minority of people. But that doesn’t mean those people don’t need tax cuts. In truth, there shouldn’t even be a death tax at all, no matter how big the inheritance is. People should be allowed to transfer 100% of their inheritance to their kids without the government interfering and trying to grab what they can in the process.
The reality is, the government “didn’t build that.” Very likely, those wealthy people who had built up their wealth over the years worked hard from their youth so that they could pass on that financial security to their family. The government had nothing to do with helping to build up that wealth. In fact, in many cases, wealth was built in spite of government being there hindering and disincentivizing savings through hefty taxation.
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