Democratic presidential nominee Hillary Clintonproposed on Thursday boosting the estate tax rate on the wealthiest estates to 65%.
The “death tax” is imposed on property transferred from a deceased person to ahis or her heir(s). The federal estate tax is levied only on inherited assets totaling $5.45 million or more for individuals.
Clinton’s proposed plan would increase the estate tax from its current level of 40% to 45%, the same rate that was in effect in 2009. The biggest estates, with values of $1 billion or more per coupleor $500 million per individual, would be taxed at 65%.
The proposed increase would be the highest estate tax level since the 1980s, and is very similar to what Clinton’s former opponent Bernie Sanders proposed during the Democratic primary race.
Clinton’s campaign said the increased estate tax rates along with changes in taxes on capital gains related with inherited assets would fund proposals that benefit the middle class.
Donald Trump, Republican presidential nominee, has proposed the elimination of the estate tax.
Center on Budget and Policy Priorities, a nonpartisan organization, said only estates of the wealthiest 0.2% of Americans are currently affected by estate tax because the first $5.45 million is considered exempt for an individual. That equates to about two out of every 1,000 Americans who die.
Clinton also proposes lowering the federal exemption level to $3.5 million.