Democratic Presidential candidate Hillary Clinton has changed her position on the estate tax by proposing an even bigger increase to it than previously proposed.
In her campaign for the Presidency, Hillary Clinton has always been proposing an increase to the estate tax. Her previous plans were for a relatively modest increase.
However, as the Wills, Trusts & Estates Prof Blog reports in "Hillary Clinton's Proposed 65% Estate Tax Rate," Clinton now proposes that the top estate tax rate be 65%. The rate would be applied to amounts over $500 million for an individual. She also wishes to apply a rate of 50% to estates over $10 million and 55% to estates with total assets over $50 million. Finally, Clinton proposes to eliminate the step-up basis for capital gains. It is estimated that these proposals would raise a total of $260 billion in tax revenues.
If the proposals seem familiar, that is because they are very similar to what her primary opponent Bernie Sanders proposed during his campaign. That makes it likely that Clinton has adopted his proposals in an effort to win over some of his supporters who remain opposed to her.
Clinton's opponent, Donald Trump, has proposed that the estate tax be eliminated entirely.
As long as Congress remains divided it is unlikely either candidates' estate tax proposals will become law. However, those who are interested in the tax should pay close attention to what the next President proposes when in office anyway.
Reference: Wills, Trusts & Estates Prof Blog (Sept. 25, 2016) Hillary Clinton's Proposed 65% Estate Tax Rate."
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