Estate Tax

Chateau-style Home in the SuburbsMuch of the way that the ultra-rich are able to hoard excessive wealth is by using tax loopholes that allow wealth to go untaxed if it’s designated as inheritance for their offspring or close family members.

Recent tax laws designed to protect inheritances means that very few estates are now liable to pay estate taxes. Current tax law provides exemptions for any estates of $22 million or less per couple, and even those who are not exempt and must pay inheritance taxes get a $4 million tax break.

One proposal for an inheritance tax would help curb the dynastic wealth that is passed down from generation to generation:

  • An estate tax proposed by Senator Bernie Sanders (I-Vermont) would impose an estate tax of at least 45 percent on any estate worth more than $3.5 million. The rate would be 77 percent on estates worth more than $1 billion.

An estate tax could raise approximately $315 billion over 10 years.