Politics
FACT CHECK: Estate Tax Hits Fewer Than 1 Percent of Estates
STEPHEN OHLEMACHER, Associated Press
WASHINGTON (AP) — The federal estate tax inspires a lot of heated political rhetoric for a tax that very few people actually pay.
The House is scheduled to vote this week on a bill to repeal the estate tax, part of a package of bills highlighting Wednesday’s deadline to file income tax returns.
The federal tax on estates has been around in various forms since 1916. Republicans have long called for repealing it; they refer to it as the “death tax.” They claim it prevents small business owners and family farmers from passing businesses on to their heirs.
Democrats say repealing the tax is a giveaway to the rich, since the only families that pay it have many millions in assets.
The bill has little chance of becoming law. Senate Democrats appear to have enough votes to block it and President Barack Obama wants to increase the estate tax, not eliminate it. The White House threatened to veto the bill Tuesday.
Nevertheless, the House is expected to easily pass the bill, providing both political parties with a campaign issue in the 2016 elections for Congress and president.
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THE CLAIMS: “The death tax is the wrong tax at the wrong time and hurts the wrong people. It’s the number one reason why family-owned businesses aren’t passed down to the next generation. It is Washington’s most immoral and calculated attack on the American Dream.” — Rep. Kevin Brady, R-Texas, sponsor of a House bill repealing the estate tax.
“For too long the federal government has forced grieving families to pay a tax on their loved one’s life savings that has been built from income already taxed when originally earned. Currently more than 70 percent of family businesses do not survive to the second generation, and 90 percent of family businesses do not survive to the third generation.” —Sen. John Thune, R-S.D., sponsor of a Senate bill repealing the estate tax.
“One of the laws that my friends on the other side of the aisle are trying to pass right now is a new, deficit-busting tax cut for a fraction of the top one-tenth of 1 percent. That’s fewer than 50 people here in Kentucky who would, on average, get a couple million dollars in tax breaks.” — Obama, speaking April 2 in Louisville.
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THE FACTS: The federal tax rate on estates is 40 percent, but big exemptions limit the share of estates that pay it to fewer than 1 percent.
This year, the exemption is $5.43 million for a single person. Married couples can exempt up to $10.9 million. Larger estates pay taxes only on the amounts above these thresholds.
A total of 5,400 estates are expected to pay the tax this year — out of about 2.6 million deaths, according to the nonpartisan Joint Committee on Taxation, which provides official estimates for Congress. That’s 0.2 percent of all deaths in the U.S.
The exemption amounts increase with inflation, so the number of estates paying the tax each year is expected to grow slowly, reaching 5,500 in 2020 and staying there through 2024, according to JCT.
Each year, the estate tax generates less than 1 percent of federal tax receipts. But over time, it adds up.
Repealing the estate tax would reduce federal tax revenues by $269 billion over the next decade, according to JCT. The House bill does not include spending cuts to offset the lost revenue, so it would be added the deficit.
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BACKDROP: Republicans say that some business owners get hit with the tax because they have valuable assets that don’t necessarily generate a lot of cash. They cite family farms, which may sit on valuable land but don’t generate enough money to pay hefty estate taxes unless heirs sell some or all the land.
“The appreciated value of land is phantom income. The value is locked in the asset, so if there’s no intent to sell the land, there’s no real income to tax other than the income the land actually produces, and that’s already taxed,” said Sen. Charles Grassley, R-Iowa.
Democrats counter that eliminating the estate tax would enable investors to amass vast sums of wealth that might never be taxed as long as they held it until they died and passed it to their heirs, who could receive it tax-free.
“The principle here is not to create a permanent aristocracy,” said Rep. Richard Neal, D-Mass.
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Follow Stephen Ohlemacher on Twitter: http://twitter.com/stephenatap
Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Barbara Lee
Congresswoman Barbara Lee Reflects on Historic Moment Less Than One Week from Election Day
Congresswoman Barbara Lee (CA-12) today released a piece on Medium reflecting on Vice President Kamala Harris’ historic presidential campaign 50 years after Lee worked on the presidential campaign of Congresswoman Shirley Chisholm.
Congresswoman Barbara Lee (CA-12) today released a piece on Medium reflecting on Vice President Kamala Harris’ historic presidential campaign 50 years after Lee worked on the presidential campaign of Congresswoman Shirley Chisholm:
“As Election Day approaches, I’m reflecting on a few dates and numbers that mean something to me.
Zero: the number of Black members in Congress 56 years ago. Next Congress, we hope to swear in over 60 members in the Congressional Black Caucus.
Three: The number of Black women to ever serve in the United States Senate since the first Congress in 1789.
Two: The number of Black women that will be elected to the Senate this year alone if we do our job.
1972: The first time a Black woman, Congresswoman Shirley Chisholm, ran for president in one of the major political parties of the United States.
Zero: the number of Black women to ever serve as president of the United States.
IF we do the work, we can change that with President Kamala Harris.
As I reflect on what would be Congresswoman Chisholm’s 100th birthday next month, I could not help but remember that my first official involvement in U.S. politics was working for her presidential campaign in 1972.
Over 50 years later, I have been involved in every single campaign since. Shirley was my mentor — she was a bold visionary, a progressive woman who understood that working together in coalitions was the only way to make life better for everyone, to build an equitable society and democracy that lived up to the creed of “liberty and justice for all.”
The historic moment we are in today is not lost on me. I have had the privilege to have known Vice President Kamala Harris for over three decades. She, after all, is a daughter of the East Bay. She, like Shirley, truly is a fighter for the people.
And I know she can move our country forward in a new way. As a member of her National Advisory Board, I have campaigned across our country to help take her message, her legacy of service, and her “to-do list,” as she says, to voters who were almost starting to feel hopeless, but are now feeling hopeful once again, captured by the politics joy and the bright possibilities brought upon by a possible Harris-Walz administration.
Recently, I visited churches in North Carolina with members of the Congressional Black Caucus. The chair of our CBC political action committee, Chairman Gregory Meeks from New York’s fifth district, eloquently and powerfully presented a vision of what Dr. Maya Angelou wrote in her famous poem, “And Still I Rise:” “I am the dream and the hope of the slave.”
Meeks remarked that on Jan. 20, 2025, we will observe the birthday of our drum major for justice, Dr. Martin Luther King Jr.
He also described that on Jan. 20, IF we do the work — if we knock on doors, if we make those phone calls, if we spread our message — standing on the podium at the U.S. Capitol will be the first Black speaker of the House of Representatives, Hakeem Jeffries.
In the wings will be over 60 members of the Congressional Black Caucus. Holding Frederick Douglass’ Bible will be the first African American woman appointed to the highest court of the land, Supreme Court Justice Ketanji Brown Jackson.
She will be swearing-in the first Black woman to serve as president, Kamala Harris, in front of the shining white dome of the United States Capitol, built by enslaved Black people.
In front of her and beyond, the tens of millions of Black men and women who voted for her. The world will witness the hope and the dreams of our ancestors ushering in a new way forward.
As I sat in front of the stage this week at the Ellipse in Washington, D.C., as Vice President Harris delivered remarks with the Oval Office behind her, I could not help but feel that our country was ready for this historic moment.
We are not only voting for a Black woman as Commander in Chief of the wealthiest and most powerful country in the world. We are definitively stating that we will not allow the clocks of freedom and justice to be turned back.
We are voting for our ancestors’ hopes and dreams. We are voting for the generations that will come after us, long after we are gone. We are voting for Vice President Kamala Harris.
Let’s get this done.
Bay Area
Pamela Price Appoints Deputy D.A. Jennifer Kassan as New Director of Community Support Bureau
On Monday, District Attorney Pamela Price announced Deputy District Attorney Jennifer Kassan as the new director of the Community Support Bureau. Kassan has over 25 years of experience as an attorney and advisor for mission-driven enterprises including benefit corporations, low-profit limited liability companies, nonprofits, cooperatives, hybrid organizations, investment funds, and purpose trusts.
Special to The Post
On Monday, District Attorney Pamela Price announced Deputy District Attorney Jennifer Kassan as the new director of the Community Support Bureau.
Kassan has over 25 years of experience as an attorney and advisor for mission-driven enterprises including benefit corporations, low-profit limited liability companies, nonprofits, cooperatives, hybrid organizations, investment funds, and purpose trusts.
Working in the DA’s new administration since 2023, Kassan was most recently assigned to the Organized Retail Theft Prosecution team.
Kassan has a master’s degree in City Planning from the University of California, Berkeley. She received a National Science Foundation Fellowship from Yale Law School, and graduated from Yale Law School in 1995. She earned her B.A. in Psychology with a minor emphasis in Ethnic Studies from UC Berkeley.
Kassan’s education, extensive legal background, list of notable accomplishments and impressive resume includes helping to found and lead multiple organizations to support community wealth building including:
- Community Ventures, a nonprofit organization that promotes locally-based community economic development,
- the Sustainable Economies Law Center, a nonprofit that provides legal information, training, and representation to support sustainable economies
- the Force for Good Fund, a nonprofit impact investment fund
- Crowdfund Main Street, a licensed portal for regulation crowdfunding
- Opportunity Main Street, a place-based ecosystem building organization that supports under-represented entrepreneurs and provides education about community-based investing.
In addition, Kassan served as an elected member of the City Council of Fremont, California from 2018 to 2024, and on the Securities and Exchange Commission Advisory Committee on Small and Emerging Companies.
In 2020 she was named to the list of World-Changing Women in Conscious Business by SOCAP Global.
“We are excited to see Jenny accept the role as the new leader for the Community Support Bureau,” said Price. “She brings a wealth of talent, experience, and a vision to expand our office’s engagement with community groups and residents, that will level-up our
outreach programs and partnerships with local organizations with the aim of promoting crime prevention.
“We thank Interim CSB Director Esther Lemus, who is now assigned to our office’s
Restitution Unit, for her hard work and a great job fostering positive relationships between the DAO and the community.”
Bay Area
Oakland Mayor Sheng Thao’s Open Letter to Philip Dreyfuss, Recall Election’s Primary Funder
Oaklanders Defending Democracy, a group opposing the recall of Oakland Mayor Sheng Thao, shared an open letter she wrote to Philip Dreyfuss of Farallon Capital, a coal hedge fund. According to Thao’s supporters, “Dreyfuss is the primary funder of the recall effort to remove her from office. He has not explained his motivations or answered one question about why he’s funding the recall or what his agenda is for Oakland.
Special to The Post
Publishers note: Oaklanders Defending Democracy, a group opposing the recall of Oakland Mayor Sheng Thao, shared an open letter she wrote to Philip Dreyfuss of Farallon Capital, a coal hedge fund.
According to Thao’s supporters, “Dreyfuss is the primary funder of the recall effort to remove her from office. He has not explained his motivations or answered one question about why he’s funding the recall or what his agenda is for Oakland.
“All we know about him is his firm has invested over $2 billion in coal since 2022. Farallon Capital is a global hedge fund with $39 billion capital under management, headquartered in San Francisco, the supporters say.
The effort to recall Mayor Sheng Thao was built on top of an argument about a crime wave, pinning the blame for it on a newly elected Mayor. Now that crime has dropped massively, recall proponents are left with no compelling argument.
Oct. 30
Dear Philip Dreyfuss,
We haven’t met. As you know, I’m the Mayor of Oakland, elected in 2022 to serve and protect this city. Since stepping into office, I’ve tackled rising crime, homelessness, and budget challenges head-on, working tirelessly for Oakland’s future.
You are a hedge-fund manager and coal investor who doesn’t live in Oakland who is trying to buy our city government. But the people didn’t elect you, they elected me to protect them from people like you.
Shortly after my term began, you launched a campaign to remove me from office, pouring in nearly $500,000 of your own wealth. We’ll know the outcome of your campaign on Nov. 6, but let’s be clear about what’s at stake.
Since I took office, crime has dropped over 30%—we’re on track for less than 100 homicides for the first time since 2019, with 15,000 fewer crimes overall.
We’ve invested hundreds of millions into affordable housing, modernized our 911 system, streamlined construction permitting, and are fighting to make Oakland a safer and cleaner city.
If your recall succeeds, Oakland will see four mayors in just five years, another election for mayor the following year and a whopping $10 million cost to taxpayers. In other words, chaos. None of this will impact you because you don’t live here.
Oaklanders deserve to know who you are. I looked into your record and found that the hedge fund you help manage, Farallon Capital, has invested over $2 billion in coal since 2022.
For years, Oakland has stood tall against coal money threatening the health of West Oakland, Chinatown, Jack London and downtown.
Did you know that life expectancy in West Oakland is 7.5 years lower than the County average? Or that our children suffer from asthma at a rate twice as high as the rest of the County?
Philip, instead of trying to use your wealth to hijack our democracy and create chaos in our city you could have put your money where your mouth is.
Instead of investing in coal you could have invested in our young people—created scholarships for our college-bound kids, funded apprenticeships for those who want to learn a trade or helped rid our schools of lead.
Instead, you chose to divide us while you try to buy us. But I’m here to tell you, Philip, on behalf of the 450,000 residents of my city that Oakland is not for sale. NO to coal. NO to chaos. And NO to your selfish and self-serving recall.
Oakland Mayor Sheng Thao, City Hall, Oakland
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