Sanders' estate tax would hit more heirs of the wealthy
Sanders proposed expanding the rate to 77 percent for those passing on assets in excess of $1 billion
Sen. Bernie Sanders’ plan to tax the assets of the wealthiest Americans when they die stands to generate a significant chunk of revenue, as it affects a larger number of individuals.
According to a new analysis by the University of Pennsylvania’s Wharton School Budget Model, the independent Vermont senator's proposed estate tax, which would be levied on assets like real estate and cash when a person dies, would raise $267 billion in revenue between 2020 and 2029 if it were approved.
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Sanders proposed expanding the rate to 77 percent for those passing on assets in excess of $1 billion.
Under his plan, the first $3.5 million worth of assets would be exempted, after which a 45 percent rate would be triggered. For those with assets worth between $10 million and $50 million, the rate would rise to 50 percent and to 55 percent for an estate valued between $50 million and $1 billion.
According to the analysis, the estate tax would apply to about 0.5 percent of decedents in any given year. Under current law, an estimated 0.2 percent of decedents would be affected.
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“The estate tax has never hit a lot of estates,” Penn Wharton Budget Model Director of Policy Analysis, Rich Prisinzano, told FOX Business. “This is a significant increase, but it’s just small. It doesn’t hit a lot of estates.”
Compared with other tax proposals 2020 Democrats have put forward, Prisinzano notes that the estate tax is “sellable” because it affects a small, unsympathetic group.
Sanders said his bill, dubbed the “For the 99.8% Act,” would only affect the richest 0.2 percent of Americans.