On the heels of top Senate Republicans introducing legislation to fully repeal the federal estate tax, former Democratic presidential candidate Senator Bernie Sanders recently proposed to expand the estate tax on America’s wealthiest families. The proposal would create a 77 percent tax on the estates valued over $1 billion, a policy that would affect as little as 0.2 percent of Americans.
Senator Sanders’ proposal would levy a 45 percent tax on the value of estates between $3.5 million and $10 million, increasing gradually to 77 percent for estates valued at more than $1 billion. Under the current tax system, assets in estates valued over $11 million for individuals and $22 million for married couples are taxed at 40 percent.
The plan’s summary claims the measure would take in an estimated $2.2 trillion in revenue rom the families of all 588 billionaires in the country with a combined net worth of more than $3 trillion. Senator Sanders is one of many would be nominee for the Democrat ticket for the 2020 presidential election putting forth ideas on taxing America’s wealthiest families to bridge what the party sees as a growing economic equality gap in the country.