Donald Trump and Hillary Clinton have two different plays for estate taxes. Clinton wants to make it higher, and Trump wants to make it lower. Yet behind the political noise, its contribution to revenue has gotten smaller over the years. As a result, any changes made to the policy are likely to have a minimal impact on tax receipts. According to the IRS, the estate tax generated $16.4 billion in 2014. That's down roughly a third from 2006, when collections added up to $24.6 billion. Receipts have fallen even more dramatically when looking farther back. In 2011, the latest year analyzed, that number was only 0.13 percent.
The estate tax now accounts for less than 1 percent of federal revenue, according to the Tax Foundation. That drop is surprising given the rising number of millionaires and billionaires that came up from two decades, and the trillions of dollars supposedly being passed on to the next generation. The main reason behind the decline is a higher number of exemptions. In 1976, estates had to pay a tax on a value of more than $60,000. Today, the threshold is $5.5 million for individual estates. That means that anyone who leaves their heirs less than that amount is excluded. The top estate tax rate has also come down, from 70 percent in 1981, to 55 percent in 2000, to 40 percent today. Another reason the estate tax is quietly dying is that the rich have become better at avoiding it. A vast array of trusts and estate-planning tools have made it easier for wealthy families to pass down assets without being subjected to the tax. This relates to APGOV because the government is the ones who take our tax money. When they get that money, it is then distributed back to the people. Majority of that money goes to the military and then the government and then it goes to everyone else. If Trump lowers the taxes then less money will be going towards things. If Hilary increases the taxes then everyone would have to pay more taxes, but will still get money back.
The estate tax now accounts for less than 1 percent of federal revenue, according to the Tax Foundation. That drop is surprising given the rising number of millionaires and billionaires that came up from two decades, and the trillions of dollars supposedly being passed on to the next generation. The main reason behind the decline is a higher number of exemptions. In 1976, estates had to pay a tax on a value of more than $60,000. Today, the threshold is $5.5 million for individual estates. That means that anyone who leaves their heirs less than that amount is excluded. The top estate tax rate has also come down, from 70 percent in 1981, to 55 percent in 2000, to 40 percent today. Another reason the estate tax is quietly dying is that the rich have become better at avoiding it. A vast array of trusts and estate-planning tools have made it easier for wealthy families to pass down assets without being subjected to the tax. This relates to APGOV because the government is the ones who take our tax money. When they get that money, it is then distributed back to the people. Majority of that money goes to the military and then the government and then it goes to everyone else. If Trump lowers the taxes then less money will be going towards things. If Hilary increases the taxes then everyone would have to pay more taxes, but will still get money back.
So why aren't rich people going to jail for finding loop wholes for paying their taxes? It cant only be wesley snipes
ReplyDeleteI feel like they haven't gone to jail yet because of white privilege, and maybe they have someone looking out for them
DeleteSo why aren't rich people going to jail for finding loop wholes for paying their taxes? It cant only be wesley snipes
ReplyDeleteIn your claim/argument, do you encourage people to vote for Hillary because of what she has to offer back to us citizens? Or does the gov't need to find a different way of taxing
ReplyDeleteIm not saying anything. Im just explaining what the people who want to run your country is doing in the world and what they are debating about. With the taxing, i feel like they should stop rising it all the time, because there are some people who barely make a lot, but the government is still taking away their money
DeleteSo what does this say about our government and what kind of power money has on our lives. Taxes is essential part of being an american citizen but so many rich americans that benefited off the system has refused to pay in full what they owe. These people need to be held responsible.
ReplyDeleteThis is saying that money is the power of everybody and everything. No matter how high or low we make taxes there will always be an issue
DeleteThis is saying that money is the power of everybody and everything. No matter how high or low we make taxes there will always be an issue
DeleteI agree with ezekeil. I feel like in America the root of most problems is disparities in wealth and property because the more material items you have the more influence you also have as a result. Do you feel as if there is any real way to combat this kind of issue?
DeleteI agree with what Ezekiel was saying. I'm going to also connect this to the race for president. I feel that this may be the reason Donald trump is afraid to release his taxes.He doesn't wanna show all his debt that he may owe other corporations.
ReplyDeleteIf Donald lowered the estate tax how do you think that would affect the economy?
ReplyDeleteA lot of things that need to be funded, like new roads, lights and things of that nature would not get paid for
DeleteI agree with Glasgow. I feel that if you are and American you are protected by, police educated by our schools and provide an area of general welfare it is ur OBLIGATION to pay taxes and your far share at that. Why must the poor pay a greater percentage than the rich?
ReplyDelete