Sen. Bernie Sanders (I-Vt.) is proposing a much more progressive version of the estate tax ― one that taxes the nation’s billionaires at a rate of 77 percent when they die.
“Our bill does what the American people want by substantially increasing the estate tax on the wealthiest families in this country and dramatically reducing wealth inequality,” Sanders said in a press release. “From a moral, economic, and political perspective our nation will not thrive when so few have so much and so many have so little.”
Sanders’ bill focuses on the wealth of the richest 0.2 percent of earners. If it were to pass, estates between $3.5 million and $10 million would be taxed at 45 percent; estates between $10 million and $50 million would be taxed at 50 percent; and estates between $50 million and $1 billion would be taxed at 55 percent.
Estates of people with more than a billion dollars to their name would be taxed at 77 percent.
Sanders says his act already has the approval of economists including Thomas Piketty, Emmanuel Saez and Robert Reich.
“As wealth concentration is surging in the United States, it is high time to revive the estate tax, plug the loopholes, and make it more progressive. Sen. Sanders’ bill is a bold and welcome leap forward in this direction,” Saez said in the press release.
This is a developing story. Please check back for updates.