Estate tax

Amendment To Avoid Subjecting Thousands of Families, Family Businesses, and Family Farms and Ranches to the Estate Tax of 2008

hmoroz — Fri, 21 Mar 2008 15:26:43 -0400

Legislation

The middle class

Opposes

Video Summary

Injustice Facts

Maximum value of estate exempt from the estate tax in 2001, in dollars: 675,000

Top estate tax rate in 2001: 60

Maximum value of estate exempted by the Salazar Amendment, in dollars: 5,000,000

Top estate tax rate mandated by the Salazar Amendment: 35%

Top estate tax rate in 2009 if the Salazar Amendment is not enacted: 45%

Percentage of estate tax revenue that will come from the top 10% of the income distribution in 2007: 90

Amount of revenue that the estate tax will raise from the 14,000 estates subject to the tax in 2007: $19 billion

The effective tax rate – calculated based on the share of an estate actually paid in tax – that results from a 35% statutory estate tax rate with a $3.5 million per person exemption: 14%

Income and payroll tax rate for a family of four with an income of $60,000: 18%

Overview/Summary

Middle Class Position Analysis

Middle Class Opposes. Although the Salazar Estate Tax Amendment is revenue-neutral, and so will not increase the budget deficit, estate tax revision that significantly decreases the tax rate and increases the exemption still adversely affects the middle class. The estate tax applies only to Americans lucky enough to inherit substantial fortunes – approximately .5% of deaths result in taxable estates – and the amendment’s changes to the estate tax in 2009 would benefit only 3 of every 1,000 estates worth millions of dollars. The tax preserves the American tradition of rewarding hard work, not inherited privilege and wealth. The revenue neutrality of the amendment could require spending reductions for already underfunded federal programs that benefit the middle class or will oblige those who work for their money to pick up a bigger share of the tax bill while allowing accumulated wealth to be passed on for generations.

Quotes from Experts

Beyond this Bill

Additional Resources

The Estate Tax: Myths and Realities, from the Center on Budget and Policy Priorities

Testimony of Lily L. Batchelder, Associate Professor of Law & Public Policy, Before the Senate Finance Committee

Estate and Gift Taxes Background Documents, from the Tax Policy Center

Amendment To Protect Small Businesses, Family Ranches, and Farms from the Death Tax of 2008

hmoroz — Fri, 21 Mar 2008 14:47:43 -0400

Legislation

The middle class

Opposes

Video Summary

Injustice Facts

Maximum value of an estate exempt from the estate tax in 2001, in dollars: 675,000

Top estate tax rate in 2001: 60%

Maximum value of an estate exempted by the Kyl Amendment, in dollars: 5,000,000

Top estate tax rate mandated by the Kyl Amendment: 35%

Percentage of tax benefit enjoyed by estates valued at more than $10 million if the Kyl Amendment is enacted: 63

Percentage of tax benefit enjoyed by estates valued at less than $3.5 million per person if the Kyl Amendment is enacted: 0

Approximate cost of the Kyl Amendment between 2012 and 2021, in dollars: 770 billion

Overview/Summary

Middle Class Position Analysis

Middle Class Opposes. The estate tax applies only to Americans lucky enough to inherit substantial fortunes. In fact, approximately .5% of deaths result in taxable estates. In this way, the tax preserves the American tradition of rewarding hard work, not inherited privilege and wealth. Although the Kyl Amendment does not fully repeal the estate tax, as has been proposed in the past, the legislation would still cost approximately 77% of the $1 trillion cost of permanent repeal between 2012 and 2021. This significant reduction in revenue would benefit only the wealthiest 3 of every 1,000 American estates worth millions of dollars. The Kyl Amendment would adversely affect aspiring middle-class and middle-class Americans by burdening them with more of the cost of public services while allowing accumulated wealth to be passed on for generations. Those who work for their money would be forced either to pick up a bigger share of the tax bill or to suffer cuts in services essential to middle-class families and communities.

Quotes from Experts

Beyond this Bill

Additional Resources

Kyl Estate Tax Amendment Would Cost Nearly as Much as Estate Tax Repeal, from the Center on Budget and Policy Priorities

State-by-State Data on the Estate Tax, from Citizens for Tax Justice

Testimony of Warren Buffet, Before the Senate Finance Committee

Tax Increase Prevention Act of 2007

atraub — Mon, 08 Oct 2007 13:43:14 -0400

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Quotes from Experts

Beyond this Bill

Additional Resources

Estate Tax Repeal Amendment of 2007

atraub — Wed, 26 Sep 2007 15:54:10 -0400

Legislation

The middle class

Opposes

Video Summary

Injustice Facts

Year the federal estate tax was introduced: 1916

Ratio of Americans who died in 2006 that paid any estate taxes: 5 in 1000

Percentage of the estate tax paid by the wealthiest 1 percent of Americans: 90.3

Estimated amount raised by the estate tax in 2006: $18.3 billion

Estimated cost of completely repealing the estate tax from 2012 to 2021: $1 trillion

Overview/Summary

Middle Class Position Analysis

The Middle Class Opposes: The estate tax falls only on the small number of individuals lucky enough to inherit a windfall – less than one percent of Americans ever pay it at all. Nearly half of all estate taxes collected by the government are paid by the most affluent 0.1% of Americans. In this way, the estate tax continues America’s long tradition of honoring hard work and opportunity, rather than inherited privilege and wealth. But by abolishing the estate tax, this amendment would deprive the public of hundreds of billions of dollars in tax revenue. In effect, estate tax repeal shifts more of the cost of public services onto middle-class and aspiring middle-class families, allowing accumulated wealth to be passed on for generations while obliging those who work for their money to either pick up a bigger share of the tax bill, or suffer cuts in services essential to middle-class families and communities.

Quotes from Experts

Beyond this Bill

Additional Resources

“The Estate Tax: Myths and Realities,” from the Center on Budget and Policy Priorities

United for a Fair Economy on the estate tax

Citizens for Tax Justice on the estate tax

“Estate Tax Facts,” from the Tax Policy Center

Death Tax Repeal Permanency Act of 2003

atraub — Tue, 25 Sep 2007 15:23:28 -0400

Legislation

The middle class

Opposes

Video Summary

Injustice Facts

Number of Americans that would support a candidate who would eliminate the estate tax: 6 in 10
Number of American tax payers who actually pay the estate tax: 1 in 50
Percentage of United States Senators potentially subject to the estate tax: 40
Percentage of United States families potentially subject to the estate tax: 4

Overview/Summary

Middle Class Position Analysis

The Middle Class Opposes: Less than two percent of the U.S. population pays any estate taxes, and nearly half of all estate taxes collected by the government are paid by the most affluent 0.1% of Americans. In 2003, estate taxes collected on the inherited assets of the wealthiest citizens–over $1.5 million–provided the federal government with $20 billion in revenue to fulfill its commitments to American families. This loss of revenue would inevitably force reductions in the public institutions that are funded by taxpayers to provide services critical to their children and communities.

Quotes from Experts

Beyond this Bill

Additional Resources

Death Tax Repeal Permanency Act of 2005

atraub — Mon, 24 Sep 2007 12:10:00 -0400

Legislation

The middle class

Opposes

Video Summary

Injustice Facts

Year the federal estate tax was introduced: 1916
Maximum percentage of Americans who died in 2004 that paid any estate taxes: 1 percent
Percentage of revenue from the estate tax that came from estates valued at $10 million or more: half
Estimated amount raised by the estate tax in 2004: $23.4 billion
Estimated cost of completely repealing the estate tax from 2012 to 2021: $1 trillion
Estimated amount by which charitable donations would have been reduced had the estate tax not been in effect in 2000, according to the Congressional Budget Office: $25 billion

Overview/Summary

Middle Class Position Analysis

The Middle Class Opposes: The estate tax falls only on the small number of individuals lucky enough to inherit a windfall – less than one percent of Americans ever pay it at all. Nearly half of all estate taxes collected by the government are paid by the most affluent 0.1 percent of Americans. By further increasing the amount of money heirs can acquire without paying a dime, this bill would shift more of the cost of the public services that benefit all Americans onto middle-class families, allowing accumulated wealth to be passed on for generations while obliging those who work for their money to pick up a bigger share of the tax bill, or suffer cuts in services essential to middle-class families and communities.

Estate tax

Amendment To Avoid Subjecting Thousands of Families, Family Businesses, and Family Farms and Ranches to the Estate Tax of 2008

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

Amendment To Protect Small Businesses, Family Ranches, and Farms from the Death Tax of 2008

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

Tax Increase Prevention Act of 2007

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

Estate Tax Repeal Amendment of 2007

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

Death Tax Repeal Permanency Act of 2003

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

Death Tax Repeal Permanency Act of 2005

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources