Bernie Sanders proposes steep rise in inheritance taxes, after Elizabeth Warren suspended wealth tax
Senator Bernie Sanders on Thursday introduced legislation that would raise the estate tax for billionaires, the left’s latest effort to raise taxes for wealthier Americans.
The Vermont independent, who could run for the 2020 Democratic nomination for president as he did in 2016, proposed a bill that he said would only apply to 0.2% of Richest Americans.
It would impose taxes as high as 77% on an estate greater than $ 1 billion, which represents a return to the highest rate from 1941 to 1976. The tax would increase at a rate of 45% on estates assessed at also little as $ 3.5 million.
Sanders’ proposal follows that of Senator Elizabeth Warren, a Democrat from Massachusetts who is considering a presidential candidacy. Warren’s bill is intended to apply only to the richest 0.1% of Americans and would establish a 2% annual tax on household equity of between $ 50 million and $ 1 billion, as well an additional 1% tax on any equity over $ 1 billion. .
Warren said his bill would bring in $ 2.75 trillion over a decade, while Sanders said his would bring in $ 2.2 trillion.
Sanders went so far as to identify the maximum amount of inheritance tax for billionaires. AMZN from Amazon,
Jeff Bezos, according to his calculations, could face a liability of up to $ 101.3 billion, up from a maximum of $ 52.75 billion under current law. Microsoft MSFT,
Founder Bill Gates could owe up to $ 73.5 billion, up from a maximum of $ 38.3 billion under current law. There are a number of ways the wealthy can avoid or minimize paying estate taxes.
Interestingly, Warren and Sanders claim support from economists Emmanuel Saez and Gabriel Zucman of the University of California at Berkeley, two academics on the issue of wealth inequalities.
Representative Alexandria Ocasio-Cortez, a Democrat from New York, discussed the idea of ââtaxing the income of those who earn more than $ 10 million at a rate of 70%, a proposal that sparked opposition from billionaires including Michael Dell and Howard Schultz, the former Starbucks SBUX,
CEO who plans an independent presidential campaign.
Meanwhile, Sen. John Thune, a Republican from South Dakota, this week proposed legislation backed by other Republicans, including Mitch McConnell, to get rid of the inheritance tax altogether, which they call the death tax.
The 2017 tax overhaul doubled the inheritance and gift tax exclusion to $ 10 million, with the rate remaining at 40%. Republicans say the inheritance tax weighs on family farms and ranches.