Estate Tax Proposal

[RetireeRobert]

Chairman of Senate Budget Committee is proposing this: https://finance.yahoo.com/news/estate-tax-bernie-sanders-113717060.html

It would reduce the estate tax exemption down to $3.5 million.

 

[SecondCor521]

Chairman of Senate Budget Committee is proposing this: https://finance.yahoo.com/news/estate-tax-bernie-sanders-113717060.html

It would reduce the estate tax exemption down to $3.5 million.

And increase the tax rate from it's current 40% level to 45%/55%/65% depending on the estate size.

This is similar to but a more aggressive and progressive proposal than a Biden policy proposal as a candidate.

But since this is just a proposal we're not supposed to yet be able to discuss it per forum rules I think. Maybe a moderator will comment.

 

[MrLoco]

Drastically reducing the Federal Estate TAx exemption amount is certainly bad news.

Plus consider if you live in a state that has its own State estate tax exemption. My state's exemption amount is slightly above $1.5M. Not really much if you factor in a house. But at least the state's taxation % is not as high as the Federal amount (%).

We are considering gifting to our adult children to take advantage of the current limits; but want to first know exactly what the new amounts will be. Also, in the coming years, this could change again and go back to current levels or even beyond.

Trying to plan with little concrete information is tough.

 

[MichaelB]

And increase the tax rate from it's current 40% level to 45%/55%/65% depending on the estate size.

This is similar to but a more aggressive and progressive proposal than a Biden policy proposal as a candidate.

But since this is just a proposal we're not supposed to yet be able to discuss it per forum rules I think. Maybe a moderator will comment.

It looks like a real legislative proposal, so it’s a legitimate topic for discussion. The thread was moved to the Public Policy forum. The discussion really needs to about early retirement, not just everyday anti tax snark and rants, which will be deleted without notice.

Sanders proposal here https://www.sanders.senate.gov/wp-content/uploads/For-the-99.5-Summary.pdf

Edit to add - to avoid confusion, a new thread was started for this specific proposal

 

[MichaelB]

Sorry, my mistake. If any of these proposals make it out of committee, they will then be legitimate topics for discussion. Most die in committee, and the ones that do make it to the floor have been changed, so we’re better off waiting for a real bill.