Republicans say that they care about the deficit, but they don’t really. Here is yet another example that shows this:
The House voted Thursday to repeal the federal tax on estates
it would add $269 billion to the budget deficit over the next decade.
The federal tax rate on estates is 40 percent, but 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 amounts above the 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.
Given a choice between giving a big tax cut to the very rich and the deficit, they chose giving the very rich a big tax cut.
Just for fun, let’s look at the numbers. Since this would add $269 billion to the deficit for the decade, that means: about $26.9 billion per year for 5400 which gives $4.98 million per estate which means $12.45 million were subject to the tax per estate. This says the average for a single person estate is $17.88 million and $23.35 million for married couples. Keep that in mind when you hear this:
Republicans refer to it as the ‘‘death tax.’’ They say it prevents small business owners and family farmers from passing businesses on to their heirs.
Let’s say the estate of a single person has $10 million then the tax would be .4*(10-5.43)=$1.828 million which leaves the heirs with $8.172 million. That’s peanuts.