Opinion: Hey, Trump, it’s the ‘estate tax,’ not the ‘death tax’
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Good morning. I’m Paul Thornton, and it is Saturday, Sept. 30, 2017. Today is the deadline for
Try to think of a fairer tax than the levy on estates worth more than $5.5 million upon an individual’s death. It’s a tax only on the wealthiest Americans. It’s a tax on unearned income. It’s a tax that affects only 0.2% of estates. It incentivizes wealthy Americans to donate to charity or otherwise put their vast sums of money to good use before they die. What’s not to like?
Plenty, apparently, but only if you believe the Republican “death tax” label isn’t completely dishonest. In a speech promoting the tax overhaul proposed by the White House and GOP leaders in Congress, Vice President
Still, some Republicans insist that the tax is unfair because it forces some people to sell the family farm or small business they inherited just to pay the
But if Choate’s family pays the estate tax after his demise, it would be the exception, not the rule. The non-partisan Tax Policy Center estimates that only 50 family farms and small businesses will pay estate taxes in 2017. That’s about 0.4% of the family farms that passed into estates in 2016. And the average tax rate paid by those 50, the center estimated, is 6%.
In other words, while the tax burden on some families may be large enough to force them to sell their holdings, that rarely happens. …
If anything, ending the estate tax increases the tax burden on working families by lifting some of the load off of the wealthiest ones. But that’s just another detail about the GOP tax plan that top Republicans aren’t touting.
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