(Forbes) Hillary Clinton wants to raise the estate tax up to an astounding 65%. Donald Trump wants to repeal it. On this issue, their views could not be more opposite. Plainly, Hillary’s savvy move could bring in droves of Bernie supporters. But is it likely to pass or to collect large amounts? Probably not. Current law exempts estates worth $5.45 million or less. Beyond that, you pay 40%.
Ms. Clinton previously called for whittling the $5.45 million figure down to $3.5 million, and upping the 40% tax rate to 45%. But those were modest hikes, and that was then. Now, with populist flair, she wants a 50%, 55%, and 65% rate. The 50% rate applies to estates worth over $10 million per person, 55% for estates over $50 million, and 65% for estates exceeding $500 million. The new proposed estate tax plan makes her prior 40% to 45% hike seem inconsequential.