Sen. Jon Kyl (R-AZ) and Sen. Blanche Lincoln (D-AR) have a $250 billion proposal to cut estate taxes for the children of multi-millionaires even more than George W. Bush already did, and it’s attracting a disturbing amount of support.
Their $250 billion proposal would raise the estate tax exemption from $7 million to $10 million per-couple and lower the top rate from 45% to 35%.
While opponents of the estate tax claim rolling it back protects small farms and businesses, the Center on Budget and Policy Priorities points out that “only 0.2 percent of the additional cost of the proposal, relative to [the Obama proposal], would go toward tax cuts for small businesses and farms.”
The rest of the cost, approximately $249.5 billion, would go to the inheritors of estates worth over $7 million. Paris Hilton, get excited.
Let’s make one thing clear: the estate tax affects a vanishingly small number of American families. Under President Barack Obama’s budget, over 99.7% of people who pass away wouldn’t pay a dime.
Apparently, however, this isn’t enough for some Senators, who would gut revenues needed for investments in health care, education and energy in order to reward the inheritors of massive estates with $249.5 billion.