Blogs Derek's Tax Blog New Bill Includes A 65% Tax Rate
Written by Derek W. Jensen
Thursday, 24 June 2010 10:31
Sen. Bernie Sanders (I-Vt.) introduced legislation today to restore the estate tax. It includes a shockingly high maximum rate of 65%. See article.
However, this bill may be more about making a political point than seriously offering a resolution to the estate tax drama. Consider:
- The bill was introduced 2 weeks after a New York Times article on how "A Texas pipeline tycoon who died two months ago may become the first American billionaire allowed to pass his fortune to his children and grandchildren tax-free".
- The bill was introduced 1 week after Sen. Chuck Grassley (R-Iowa) accused the Senate's leaders of dragging their feet an estate tax fix. He said, "The slow-walking strategy will leave the American people with current law ($1m exemption & 55% top rate)."
- The bill was introduced 2 days after a report that Senate Majority Leader Harry Reid will not bring an estate tax bill to the Senate floor due in part to the threat of a filibuster by none other than Sen. Sanders.
- Also 2 days ago House Majority Leader Steny Hoyer stated that “raising revenue is part of the deficit solution, too.” Read that as a signal that higher taxes are coming for the middle class; increasing the difficulty to cut taxes on millionaires by lowering the estate tax.
- The Forbes article that describes Sanders bill notes that Sanders himself has said he supports a do nothing and have the old law return approach.