Congress should jump on board an improved estate tax introduced today by Senator Bernie Sanders, that would levy a top rate of 77 percent on inheritances over $1 billion. Sanders bill, The For 99.8% Act (pdf), would also plug up loopholes and ban trusts that wealthy families use to hide and perpetuate wealth dynasties.
"The 400 wealthiest billionaires on the Forbes 400 list today own as much wealth as the bottom 64 percent of the US population combined... And they are clearly using this wealth and power to rig the rules further in their favor."
The estate tax, established by Congress a century ago to put a brake on the build-up of concentrated wealth and power, is paid only by a miniscule sliver of billionaires and multi-millionaires. At the time, Theodore Roosevelt supported the estate tax as a protection against the “tyranny of plutocracy.”
Sanders estate tax proposal is a plutocracy prevention act, squarely aimed at preventing the children of today’s billionaires from dominating our future democracy, economy, culture and philanthropy.
In December 2017, Republicans failed to abolish the estate tax as part of their $1.5 trillion dollar tax windfall for the superrich and a handful of transnational corporations. But they did raise the exemptions of who will pay the tax.
In 2019, fewer than 2,000 households will pay the tax, starting with couples with over $22.8 million (individuals with over $11.4 million).
Earlier this week, Senate leader Mitch McConnell and Sens. Charles Grassley (R-Iowa) and John Thune (R-SD) introduced the “Death Tax Repeal Act of 2019.” It is worth noting that the number of annual taxable estates in their home states of Kentucky, Iowa, and South Dakota are fewer than two dozen.