Last year, median family income was $53,891. [This means half of the households were lower, half higher.] One thousand times $53,891 is $53,891,000. [I take it this is not controversial, although these days, you never know which parts of math and science Republicans will object to.]
My proposal: No young person should inherit more than a millennium of median household income [in 2015 dollars. Who knows what the dollar will be worth in 3015?] So, when a billionaire or multi-millionaire dies, he or she can leave $53,891,000 to each child, and all the rest will be taxed by the state. The proceeds can be used to reduce the FICA tax.
It's so sensible and yet so radical! Anyway, as a citizen, I agree.
ReplyDeleteCurrently, a person can only leave about 5.4 million at death (total, not per recipient) free of federal estate tax (40% rate). Are you suggesting that that amount is far too low?
ReplyDeleteOf course, the house has now voted to repeal the estate tax completely.
I was suggesting that everything above 62 million be taxed at 100%.
ReplyDeleteIt would be interesting to know just how much revenue that would generate each year.
Don't know but there were 290 estate tax returns filed by decedents dying in 2011 who had estates of $50 million or more. Those estates added up to about $50 billion. Of course if you allow a person to leave 62 million to as many people as he/she wants, then any estate could (and most probably would) go untaxed under your proposal.
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