Embattled presidential candidate Hillary Clinton released a plan that would return estate tax rates and exemptions to 2009 levels. Her proposal would push the maximum tax rate to %45 from the current %40 and reduce the exemption to $3.5 million per person or $7 million for a married couple. The plan seems to be an attempt to gain traction among liberals that have been increasingly shifting towards insurgent candidate Sen. Bernie Sanders who has pulled within striking distance of Clinton in Iowa and maintains a strong lead in New Hampshire. He has been a vociferous critic of the current estate tax regime calling for a significant raise to the maximum rate and drastic cut the exemption as a key part of his progressive platform. Clinton’s proposal has the potential to raise $150 billion in revenue over 10 years and affect only 4 out of a 1000 families which makes it a popular alternative for many on the left and center who are anxious to avoid increasing taxes on the middle class.
See, Clinton Calls For Broadening Estate Tax, Increasing Its Rate, Private Wealth, January 13, 2016.
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.
Special thanks to Jim Hillhouse for bringing this article to my attention.
