Last week, the Pew Research Center unveiled results from a recent survey of Americans about the tax code and tax reform.
Overwhelmingly, the greatest concern among those surveyed - both Democrats and Republicans alike and 80 percent of Americans overall - was that some people don’t pay their fair share in taxes, underlying the widespread feeling among the public that a select few play by a different set of more favorable rules than everyone else.
The legislation before us today to repeal the estate tax reinforces that perception. It comes against a backdrop of increasing wealth and income inequality in the United States.
The share of total wealth owned by the top 0.1% in the U.S. grew from 7% in 1978 to 22% in 2012, according to the National Bureau of Economic Research.
In 2013, the median wealth of upper income families ($639,400) was nearly seven times the median wealth of middle income families ($96,500), the widest wealth gap since the Federal Reserve began collecting data 30 years ago.
The 80% of the American public in the Pew survey are not envious, they are incensed.
This bill would help barely more than 5,000 households in this country in any given year at a cost of $269 billion to American taxpayers over the next decade, according to the Joint Committee on Taxation.
That is $269 billion to benefit 0.15% of taxpayers, which this first graphic makes clear. All of those taxpayers would fill less a tenth of the seats at Lambeau Field.
Three-quarters of the benefit of this bill accrues to people inheriting estates worth more than $20 million. More than 40 percent goes to those inheriting estates valued at $50 million and up. Those estates worth more than $50 million would each get an average tax cut of more than $22 million under this bill, as this second chart shows.
This isn’t middle class economicsNearly three-quarters of the benefit of this bill accrues to people inheriting estates worth more than $20 million. More than 40 percent goes to those inheriting estates valued at $50 million and up. Those estates worth more than $50 million would each get an average tax cut of more than $22 million under this bill, as this second chart shows.
The other legislation before us today concerns the IRS and its treatment of non-profit organizations. Five of the seven bills we have seen before - they were on the floor last year. We do not oppose them.
I also support the two bills that are new, including H.R. 1295, which would require 501(c)(4) organizations to provide notice to the IRS within 60 days of forming. It also makes sense that when organizations provide that notice they should also indicate whether they plan to engage in political activity or expect to file a report with the Federal Election Commission. I intend to offer an amendment that adds that requirement.
