Death & Taxes

The estate tax is something that few Americans know about, for it doesn’t apply to them in most circumstances. However, it is time for some change.

Estate taxes currently adhere to a threshold and a progressive tax system. However, within the past 16 years said threshold has been raised from $5 million to $15 million. I think that the government should absolutely continue the estate tax but based off of an adjusted taxation rate within the progressive taxation. If the current minimum amount is $11.58 million, I believe it would be reasonable to bring that down to 5 million or so and begin the tax at 5% which would be 250,000 which seems like a lot but $4.75 million remain. From there, the progressive tax would kick in, increasing 2%/million as so 6mil -> 7%, 7mil -> 9% and so on yet cap at 40%, including the addition of state tax. This would cut down the tax from 40% but still potentially give an overall return rate that would supplement federal and state resources. There is also currently a higher exemption rate for married couples which I believe shouldn't apply due to the fact that inheritance is mainly a single line of inheritance. Regardless however, the federal government needs to continue the estate tax due to the several essential programs it funds and to keep the economy stimulated instead of accumulating it within the 1%. 

Sources of information : Estate Tax | Internal Revenue Service