The Republican tax plan will exempt the 0.2% of Americans who pass on estates of $5.49 million (each) to their heirs, a tiny elite that includes most of the Trump cabinet of one-percenter plutocrats; under the Senate proposal, that exemption would double.
The argument against inheritance taxes is that they're "double taxation" because the savings were taxed once as earnings and then again as estates. But the 0.2% who currently pay estate tax primarily accumulate wealth through investments that are not taxed until they are sold -- in other words, Trump is about to give the 0.2% a tax holiday.
Trump has lied about the estate tax, saying that it is "[crushing] millions of small businesses and the American farmer." Last year, 2,204 families held estates that would have paid any tax under the estate tax.
“It was a kind of imperfect substitute or surrogate for the capital-gains tax,” Wojciech Kopczuk, an economist at Columbia University, explained. “It’s a roundabout way of getting some revenue that escapes some other type of a tax.”
In the past, a reduction in the estate tax was always coupled with a plan to end the protective shell that encases inherited capital gains and keeps them from being taxed.
“What’s unusual about the current bill is that when there’s been previous efforts to cut back or repeal the estate tax, there was also an effort to change the tax on capital gains,” said Michael J. Graetz, a Treasury official in the elder President George Bush’s administration and a co-author of a book on the estate tax.
Who’d Gain From an Estate Tax Rollback: The 0.2 Percenters
[Patricia Cohen/The New York Times]
(via Naked Capitalism)
(Image: Trump Organization, CC-BY-SA)
Jerry Falwell, Sr founded the Moral Majority, brought evangelicals into the voting booth, elected Ronald Reagan, and changed the face of American politics forever; his son, Jerry Jr now commands the Falwell empire, including Liberty University, which now has $3b in assets.
Supermajority's Gender Equality, the Status of Women and the 2020 Elections surveys likely 2020 voters (N=1912), finds a strong correlation between opposition and broad misogynistic beliefs, such as opposition to the idea that women and men should hold an equal number of positions of power; opposition to the #MeToo movement; a disbelief in the idea […]
David Howard, McSweeney's: "Let me tell you, it’s hard out here for an orc. We experience tremendous insecurity, not knowing whether we’ll have a job, or be able to raid peaceful villages, or if our friends will eat us. Sauron appeals to us economically challenged goblins because he offers us the chance of a decent […]
The field of data analytics can get intimidating, even for business professionals who constantly rely on it. But at its heart, its purpose is to simplify. To take mounds of information and distill their insights into a single clear picture. Currently, the go-to software for painting that picture is Tableau. And if you want to […]
If you’re in the market for a stable, durable camera fully suited for first-person video, there’s a good chance that you’re the adventurous type. So why settle on a familiar name like GoPro? The DJI Osmo Action 4K HDR Camera checks off all the same boxes on the action cam checklist as the GoPro 4K […]
The market for web developers is wide open these days. If only we could say the same about the pathway to that career. If you’re not already an experienced coder, it can be difficult to get things rolling. A four-year college degree or technical school? Sure, if you’ve got the money. What about web tutorials? […]