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John,
America’s wealthiest family dynasties―like the Waltons and Kochs―are set to pass $21 trillion on to their heirs over the next two decades virtually tax free, according to a report from Americans for Tax Fairness.[1]
But this massive accumulation of wealth among the richest 0.5% is apparently not enough for some Republican lawmakers.
Sen. John Thune (R-SD)—the second top Senate Republican—has introduced a bill that would completely eliminate the estate tax, which is currently the only federal curb on the accumulation of dynastic wealth.
Read Frank’s email below for more details, then click here to write to your senators and demand they strengthen, not cut, the estate tax.
From Sen. Bernie Sanders’ For the 99.5% Act, to a proposal put forward by Joe Biden when he ran for president, there are numerous ways we can strengthen the estate tax to limit dynastic wealth and raise revenue to invest in working families.
Instead of bolstering dynasties like the Waltons and Kochs, let’s create an economy that works for everyone, not just the 1%.
Thank you,
Maura Quint
Campaign Director
Americans for Tax Fairness Action Fund
[1] “Dynasty Trusts: Giant Tax Loopholes that Supercharge Wealth Accumulation,” Americans for Tax Fairness, Feb. 1, 2022
-- Frank's email --
John,
Due to tax loopholes written into law by clever tax lawyers and members of Congress, America’s wealthiest family dynasties could pass $21 trillion on to their heirs over the next two decades―while dodging as much as $8.4 trillion in taxes. This is according to a report by Americans for Tax Fairness.
These loopholes are allowing the ultra-rich to hoard historic levels of untaxed wealth, while Republicans say that Social Security, Medicare, Medicaid, and other critical programs need to be cut to reduce the deficit.
Now, Senator John Thune (R-SD)―the second-highest ranking senator―has introduced a bill that would completely eliminate the estate tax, and he already has 40 Republican co-sponsors in the Senate.
It’s critical that Congress strengthen, not eliminate the estate tax to stop the accelerating growth of family fortunes and use that tax revenue to invest in working people and families.
Write to your senators now and demand they vote NO on the Thune plan to abolish the estate tax. Demand Congress instead strengthen the estate tax and tax dynastic wealth.
The estate tax is the only federal curb on the accumulation of dynastic wealth. It reduces economic inequality by taxing the excess riches of wealthy inheritors, raising revenues that can then be used to increase opportunities for everyone who wasn’t born rich.
Over the last 40 years, the estate tax rate has been virtually cut in half from 77% to 40%.[1] Estates worth up to roughly $12 million for a single person ($24 million per couple) are entirely exempt from the tax.[2]
Because the exemption threshold has been raised so high, fewer and fewer wealthy families are paying the estate tax. Only about 1,900 estates were taxable in 2020—less than 0.1% of the 2.8 million people expected to die that year.[3]
There have been several proposals to strengthen the estate tax such as Bernie Sanders’ For the 99.5% Act, introduced during the last session of Congress, which would lower the exemption from nearly $12 million for an individual to $3.5 million, still leaving 99.5% of all estates tax-free. Sen. Sanders would also raise the base estate tax rate from 40% to 45%, increasing gradually up to 65% for estates above $1 billion.[4]
When he ran for President, Joe Biden made a similar proposal that would also return the exemption amount to $3.5 million for an individual and $7 million for a couple, and would raise the basic rate to 45%.[5]
Sanders’ plan would raise $430 billion over ten years while the Biden plan would raise $218 billion―reducing dynastic wealth while ensuring the very wealthiest families are paying their fair share.
Click here to write to your senators and demand they strengthen, not abolish, the estate tax.
Together, we’re fighting back against plans that increase the accumulation of wealth among America’s richest families, instead demanding millionaires and billionaires pay their fair share.
Thank you,
Frank Clemente
Executive Director
Americans for Tax Fairness Action Fund
[1] “Federal Estate and Gift Tax Rates, Exemptions, and Exclusions, 1916-2014,” Tax Foundation, Feb. 4, 2014
[2] “Estate Tax Exemption Amount Goes Up for 2023,” Kiplinger, Oct. 19, 2022
[3] “Briefing Book: How Many People Pay the Estate Tax?,” Tax Policy Center, accessed April 4, 2023
[4] “For the 99.5% Act: Summary of Sen. Bernie Sanders’ legislation to tax the fortunes of the top 0.5%,” Office of Senator Bernie Sanders
[5] “Biden’s Build Back Better Agenda,” Americans for Tax Fairness, Nov. 5, 2020
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