Politics

FACT CHECK: Estate Tax Hits Fewer Than 1 Percent of Estates

Published

10 years ago

April 15, 2015

In this March 17, 2015 file photo, Sen. John Thune, R-S.D. speaks to reporters on Capitol Hill in Washington. 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 Wednesdays deadline to file income tax returns. Thune is the sponsor of a Senate bill repealing the estate tax. (AP Photo/Molly Riley, File)

In this March 17, 2015 file photo, Sen. John Thune, R-S.D. speaks to reporters on Capitol Hill in Washington. (AP Photo/Molly Riley, File)

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

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‘Donald Trump Is Not a God:’ Rep. Bennie Thompson Blasts Trump’s Call to Jail Him

“Donald Trump is not a god,” U.S. Rep. Bennie Thompson, D-Miss., told The Grio during a recent interview, reacting to Trump’s unsupported claims that the congressman, along with other committee members like vice chair and former Republican Rep. Liz Cheney, destroyed evidence throughout the investigation.

Published

15 hours ago

December 18, 2024

Oakland Post

Congressman Bennie Thompson, D-Miss. Courtesy photo.

By Post Staff

U.S. Rep. Bennie Thompson, D-Miss., said he not intimidated by President-elect Donald Trump, who, during an interview on “Meet the Press,” called for the congressman to be jailed for his role as chairman of the special congressional committee investigating Trump’s role in the Jan. 6, 2021, mob attack on the U.S. Capitol.

“Donald Trump is not a god,” Thompson told The Grio during a recent interview, reacting to Trump’s unsupported claims that the congressman, along with other committee members like vice chair and former Republican Rep. Liz Cheney, destroyed evidence throughout the investigation.

“He can’t prove it, nor has there been any other proof offered, which tells me that he really doesn’t know what he’s talking about,” said the 76-year-old lawmaker, who maintained that he and the bipartisan Jan. 6 Select Committee – which referred Trump for criminal prosecution – were exercising their constitutional and legislative duties.

“When someone disagrees with you, that doesn’t make it illegal; that doesn’t even make it wrong,” Thompson said, “The greatness of this country is that everyone can have their own opinion about any subject, and so for an incoming president who disagrees with the work of Congress to say ‘because I disagree, I want them jailed,’ is absolutely unbelievable.”

When asked by The Grio if he is concerned about his physical safety amid continued public ridicule from Trump, whose supporters have already proven to be violent, Thompson said, “I think every member of Congress here has to have some degree of concern, because you just never know.”

This story is based on a report from The Grio.

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City of Oakland Celebrates Reopening of Main Library

“Libraries are such critical facilities for all Oaklanders, whether it’s children coming to story-time, adults reading the newspapers or borrowing the latest novels, and people engaging with a range of services and programs that the library hosts,” said Council President and District 2 Councilmember Nikki Fortunato Bas. “Such library services and programs are only possible when the facility’s electricity, heating, roof, and lighting are fixed and running efficiently. I’m proud to join this re-opening of our Main Public Library.”

Published

15 hours ago

December 18, 2024

Oakland Post

Left to Right- Jamie Turbak, Director of Library Services, LaTonda Simmons, Assistant City Administrator, Nikki Bas, President Oakland City Council, Shen Thao, Mayor of Oakland, Carroll Fife, Oakland City Councilmember District 3, Harold Duffey, Assistant City Administrator, Sean Maher, Projects Coordinator. Photo by Kevin Hicks.

The branch had been closed since May for critical infrastructure upgrades

Special to the Post

The City of Oakland leadership and community partners gathered to celebrate the reopening of the Main Library after completion of critical infrastructure upgrades to enhance the library’s facilities and provide a better experience for patrons.

Renovations include new roof installation, skylight repair, critical electrical system upgrades, new boiler control system installation, auditorium heating and cooling system installation, and improvements to lighting, flooring and ceilings throughout the building.

“This is truly something to celebrate, the reopening of our wonderful Main Library! I congratulate the staff and our partners for this important project to make the Main Library a more comfortable place for everyone for years to come, said Oakland Mayor Sheng Thao. “Thank you to Oakland voters and the California State Library for making these crucial improvements possible.”

“Public libraries are a wonderful resource for our residents, offering a safe space for learning and being,” said District 3 Councilmember Carroll Fife. “It is critical to improve and modernize our libraries so more members of our community can utilize and enjoy them. I’m excited that the necessary renovations to the Main Library have been completed successfully and thank everyone involved, particularly the City team, who helped secured the necessary grant funds for this work.”

“I am proud of the City staff and project partners who kept this important project on schedule and under budget,” said Assistant City Administrator G. Harold Duffey. “The library is an incredibly important resource for our community members, and this project is an investment into the library’s future.”

“December 2nd was a momentous occasion for Oakland Public Library as we proudly reopened the doors of the Main Library following extensive infrastructure repairs,” said Director of Library Services Jamie Turbak. “Closing the Main Library for six months was no easy decision, as it serves as the central hub for our library system and is truly the heart of Oakland. Yet, this renovation was essential, representing more than just physical upgrades—it reflects our ongoing commitment to creating a safe, welcoming space for everyone.”

The City Administrator Jestin Johnson also attended the press conference and signalled his support for the completion of the record-setting completion of the renovations. Gay Plair Cobb, a newly appointed Library Commissioner said the Library represents the soul and brains of our community.

The Oakland Public Library secured funding for these crititcal repairs through a variety of sources. The California State Library’s Building Forward Library Facilities Improvement Program awarded the Main Branch $4.2 million. To comply with the grant terms, the City of Oakland provided matching funds through Measures KK, as approved by the Oakland City Council in October 2023.

The Main Library will host an Open House to celebrate the reopening on February 22, 2025, 10 a.m. – 5:00 p.m.

About the Oakland Public Library

The Oakland Public Library is a part of the City of Oakland in California and has been in existence since 1878. Locations include 16 neighborhood branches, a Main Library, a Second Start Adult Literacy Program, the Oakland Tool Lending Library, and the African American Museum and Library at Oakland (AAMLO). The Oakland Public Library empowers all people to explore, connect, and grow. Oaklandlibrary.org

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Biden’s Legacy Secured with Record-Setting Black Judicial Appointments

His record surpasses previous efforts by his predecessors. President Jimmy Carter appointed 37 Black judges, including seven Black women. In stark contrast, Donald Trump’s first term resulted in only two Black women appointed out of 234 lifetime judicial nominations. The White House said Biden’s efforts show a broader commitment to racial equity and justice.

Published

16 hours ago

December 18, 2024

Oakland Post

iStockphoto.

By Stacy M. Brown
WI Senior Writer

President Joe Biden’s commitment to diversifying the federal judiciary has culminated in a historic achievement: appointing 40 Black women to lifetime judgeships, the most of any president in U.S. history.

Biden has appointed 62 Black judges, cementing his presidency as one focused on promoting equity and representation on the federal bench.

The White House said Biden’s efforts show a broader commitment to racial equity and justice.

Meanwhile, Trump has vowed to dismantle key civil rights protections, including the Justice Department’s Civil Rights Division.

“Having the Black woman’s experience on the federal bench is extremely important because there is a different kind of voice that can come from the Black female from the bench,” Delores Jones-Brown, professor emeritus at John Jay College of Criminal Justice, told reporters.

Lena Zwarensteyn of the Leadership Conference on Civil and Human Rights told reporters that these district court judges are often the first and sometimes the final arbiters in cases affecting healthcare access, education equity, fair hiring practices, and voting rights.

“Those decisions are often the very final decisions because very few cases actually get heard by the U.S. Supreme Court,” Zwarensteyn explained.

Biden’s nomination of Justice Ketanji Brown Jackson to the Supreme Court further reflects his commitment to judicial diversity. Jackson became the first Black woman to serve on the nation’s highest court.

Patrick McNeil, spokesperson for the Leadership Conference, pointed out that over half of Biden’s Black female judicial appointees have backgrounds as civil rights attorneys and public defenders, experience advocates consider essential for a balanced judiciary.

Meanwhile, Congress remains divided over the expansion of federal judgeships. Legislation to add 66 new judgeships—approved unanimously by the Senate in August—stalled in the GOP-controlled House until after the election. House Republicans proposed distributing the new judgeships over the next decade, giving three administrations a say in appointments. President Biden, however, signaled he would veto the bill if it reached his desk.

Rep. Jerry Nadler, D-N.Y., argued the delay was a strategic move to benefit Trump’s potential return to office. “Donald Trump has made clear that he intends to expand the power of the presidency and giving him 25 new judges to appoint gives him one more tool at his disposal,” Nadler said.