Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
web
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • International Elastomer Show
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • Executive Action
    • Government/Legal
    • ITEC
    • Opinion
    • Technical Notebooks
    • HEXPOL Sponsored Content
    • Starting young: Rubber Division targets high schools to fill talent gap
      ChemSpec enjoying busy 2019 with new agreements, division
      view gallery
      18 photos
      Rubber Division honors leaders, students at Business and Awards Meeting
      view gallery
      9 photos
      Rubber Division wraps up 2019 International Elastomer Conference
    • As e-commerce grows, companies seek best ways to get products to customers
      ContiTech acquires CRP's belt kits program
      Firestone air spring looks to lighten the load in China
      Auto parts makers pay $23 million to settle price fixing case
    • As e-commerce grows, companies seek best ways to get products to customers
      Steelastic names new president
      Tyromer appoints chair of board
      In the workplace, two languages are spoken
    • As e-commerce grows, companies seek best ways to get products to customers
      Reveyron partners with Beltservice for distribution
      ContiTech acquires CRP's belt kits program
      Firestone air spring looks to lighten the load in China
    • Maroon unit Addipel moves to larger site in Ohio
      AMBA files formal request to bring back tariffs on Chinese molds
      Corporate responsibility a global venture for Chemours
      Steelastic names new president
    • Steelastic names new president
      Tyromer appoints chair of board
      Kent Elastomer promotes two
      3D specialist Carbon hires former DuPont CEO Kullman as new leader
    • AMBA files formal request to bring back tariffs on Chinese molds
      Auto parts makers pay $23 million to settle price fixing case
      USTMA aims to raise scrap tire recovery rate
      Aeolus, Onyx discussing truck, bus tire joint venture in Sri Lanka
    • Goodyear finds traction with soybean oil
      Cassioli expands with sales office in Alabama
      Rodolfo Comerio looks forward as it celebrates past
      Editorial: Innovation often follows its own path, timetable
    • Column: Lessons from Best Places to Work
      Editorial: Cooper Standard a sign of changing automotive times
      Editorial: Hose industry makes big strides in safety focus
      Column: Meeting new faces at Rubber Expo
    • SSBR, bio-sourced plasticizer for conveyor belt use
      EPDM solution for automotive dense weatherstrip
      High heat resistant EPDMs for auto hose uses
      Rubber standards in today’s world economy
    • Sponsor Content
      Rubber in Transportation and Tire
      Sponsor Content
      Rubber in Wire and Cable
      Sponsor Content
      Process Control Systems Ensure Consistency and Lot Traceability While Protecting Proprietary Formulations
      Sponsor Content
      Reasons for Using Performance Additives
  • Blogs
    • Products
    • Wacky World of Rubber
    • New Products: Master Bond rolls out thermally conductive epoxy sealant
      New Products: Lanxess introduces vulcanization accelerator
      Covestro's CO2 technology earns Germany's President's prize
      New Products: LSR 3D printing technology spotlighted at K Show
    • Wacky World of Rubber: Floating ideas for the future of mobility
      Wacky World of Rubber: Goodyear, rubber industry make parade part of Thanksgiving traditions
      Wacky World of Rubber: How to make your own Halloween mask
      Wacky World of Rubber: 'Ode to a Tire'
  • Newsletters
    • Rubber in Automotive
    • Silicone News
    • Latex News
    • Sign Up for Newsletters
    • As e-commerce grows, companies seek best ways to get products to customers
      ContiTech acquires CRP's belt kits program
      Firestone air spring looks to lighten the load in China
      Auto parts makers pay $23 million to settle price fixing case
    • Starting young: Rubber Division targets high schools to fill talent gap
      Column: Lessons from Best Places to Work
      New Products: LSR 3D printing technology spotlighted at K Show
      Rubber parts makers invest in Central, Eastern Europe
    • Starting young: Rubber Division targets high schools to fill talent gap
      Kent Elastomer promotes two
      Corrie MacColl details landmark collaboration in Cameroon
      Natural rubber producers signal decline in production
  • Multimedia
    • Videos
    • Photo Galleries
  • Directory
  • Resources
    • Classifieds & Mold Mart
    • Data Store
    • Digital Issue
    • White Papers
  • Events
    • RPN Conferences
    • RPN Live
    • Events Calendar
    • Submit an Event
    • Webinars
    • Past Events
  • Advertise
MENU
Breadcrumb
  1. Home
  2. News
February 25, 2019 01:00 AM

Bernie Sanders introduces bill to re-establish estate tax threshold

Miles Moore
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Bernie Sanders

    WASHINGTON—Sen. Bernie Sanders, I-Vt., has introduced a bill that would re-establish the threshold of the estate tax at $3.5 million and set the top taxation rate as high as 77 percent.

    S. 309, which Sen. Sanders introduced Jan. 31, is also called the "For the 99.8 Percent Tax." would establish a tax of 45 percent of the value of estates valued between $3.5 million and $10 million.

    The 77-percent tax rate would be assessed only on estates worth more than $1 billion, according to S. 309's provisions. The rate would be 50 percent for estates assessed between $10 million and $50 million, and 55 percent for estates between $50 million and $1 billion.

    "At a time of massive wealth and income inequality, when the three richest Americans own more wealth than 160 million Americans, it is literally beyond belief that the Republican leadership wants to provide hundreds of billions of dollars in tax breaks to the top 0.2 percent," Sanders said in a statement accompanying the introduction of S. 309.

    "Our bill does what the American people want by substantially increasing the estate tax on the wealthiest families in this country and substantially reducing wealth inequality," he said.

    Since 2017, the estate tax exemption has been $11.4 million for individuals and $22.8 million for couples. However, that rate is scheduled to expire at the end of 2025.

    While the Tire Industry Association favors a graduated estate tax, the tax levels in S. 309 are far too harsh, TIA said in the Feb. 25 issue of its Legislative Update.

    A 20-percent tax rate on the first $5 million to $10 million of an estate, with a 40-percent tax rate on anything above that, would be much fairer, the association said.

    "We contend that this type of lower estate tax rate on the smallest taxable estates would assist in job creation and increased profitability for small businesses," TIA said.

    S. 309 would limit estate planning techniques that help small business owners to keep their businesses in the family, such as gifts of interest in a family business to younger family members, according to TIA.

    S. 309 also would be inherently unfair to small businesses, even more so than current estate tax law, TIA said.

    For example, a small business owner who died this year would owe nothing on an estate of $11.4 million, it said. If that same owner died in 2026, under current law he would owe $2.24 million.

    If S. 309 became law, the tax on $11.4 million would be about $3.63 million, TIA said.

    S. 309 was introduced one week after S. 215, the Death Tax Repeal Act of 2019, which would repeal estate taxes outright. Senate Majority Leader Mitch McConnell (R-Ky.), Senate Majority Whip John Thune (R-S.D.) and Senate Finance Committee Chairman Chuck Grassley (R-Iowa) were the co-sponsors, joined by 26 other Senate Republicans.

    TIA has long sought repeal of the estate tax. It is a member of the Family Business Coalition, a group formed specifically to oppose the estate tax.

    TIA was one of more than 150 associations, also including the Auto Care Association and the American Trucking Associations, which signed a Feb. 19 Family Business Coalition letter supporting S. 215.

    "The death tax is unfair," the letter said. "It makes no sense to require grieving families to pay a confiscatory tax on their loved one's nest egg. The negative effects of the estate tax make permanent repeal the only solution for family businesses and farms.

    Although neither bill has a strong chance of passage, both serve as reminders to small business owners to take steps now to preserve their estates for their heirs, according to TIA.

    "Even though many tax practitioners believe that their clients will have until at least the end of 2025 to take steps to preserve the higher exemption amount, this may not be the case if the country elects a Democratic majority in the Senate and House and a Democrat for president in 2020," it said.

    Letter
    to the
    Editor

    Rubber & Plastics News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    SIGN UP FOR FREE NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber & Plastics News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber & Plastics News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    web
    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Contact the Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Terms of Service
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News Europe
    • Plastics News China
    • Plastics & Rubber World
    • LSR World
    • Urethanes Technology
    • Automotive News
    • Autoweek
    • Crain Brands
    Copyright © 1996-2019. Crain Communications, Inc. All Rights Reserved.
    • News
      • International Elastomer Show
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • Executive Action
      • Government/Legal
      • ITEC
      • Opinion
      • Technical Notebooks
      • HEXPOL Sponsored Content
    • Blogs
      • Products
      • Wacky World of Rubber
    • Newsletters
      • Rubber in Automotive
      • Silicone News
      • Latex News
      • Sign Up for Newsletters
    • Multimedia
      • Videos
      • Photo Galleries
    • Directory
    • Resources
      • Classifieds & Mold Mart
      • Data Store
      • Digital Issue
      • White Papers
    • Events
      • RPN Conferences
      • RPN Live
      • Events Calendar
      • Submit an Event
      • Webinars
      • Past Events
    • Advertise