MSNBC "The Ed Show" - Transcript: The Estate Tax

Interview

BREAK IN TRANSCRIPT

SCHULTZ: And finally tonight, earlier this week, the House Ways and Means
Committee led by Paul Ryan symbolically voted to end the state tax.
Republicans have always called this the debt tax.

Well, here are the numbers. 2.6 million people died in this country in
2013. Only 4,700 of them had to pay the federal state tax. But the
government only taxes states of individual`s worth over $5.4 million. For
married couples that threshold goes up to over $10.8 million.

Even when they have to pay, they usually don`t end up paying the top rate
of 40 percent. The tax policy center estimates the average effective rates
ends up being closer to 17 percent. Thanks to tax exemptions. Eliminating
the state tax would cost the United States government treasury about $268
billion over 10 years.

Joining me tonight, Congressman Chris Van Hollen of Maryland. Congressman
always good to have you with us.

REP. CHRIS VAN HOLLEN, (D) MARYLAND: Good evening with you, Ed.

SCHULTZ: You know, this is not -- is not far fetch. I mean this could
pass the House. We brought up to Senate and pass there because it might
attached to something and this could end up on President Obama desk, how
real do you think this is?

VAN HOLLEN: Well, it shows you exactly what they want to do, Ed, and I`m
so glad you`re covering the story because it really was outrageous.

At the same time, they were taking a vote on this in the Ways and Means
Committee. We had the Republican budget on the floor, what do that budget
do? It dramatically cut early education and head start. It raises the
cost of student`s loans for college kids. It will dramatically increase
prescription drug cost for million of seniors. That`s what their budget on
the floor would do.

At the same time, in committee, they were voting to give 5,500 people a
year. This huge exemption from the state tax which as you pointed out for
couples doesn`t even begin the kick in until over $10 million. 5,000
people --

SCHULTZ: Yeah.

VAN HOLLEN: -- that`s fewer people than you can get on a large cruise
ship in United States today. And they were --

SCHULTZ: Well, it`s certainly favors -- yeah. It certainly favors a
protected class. There is no -- that seems to be the buzz-term right now
for the Republican protected class.

I mean that`s exactly what they`re doing here. But they make no way on how
they`re going to make up this money that the treasury is going to lose, do
they?

VAN HOLLEN: No, not at all. In fact in that same budget I`m talking about
where they`re cutting education. They don`t cut a single special interest
tax rate to help reduce the deficit, right? They don`t get rid of the
corporate jet loophole. They don`t deal with the loophole that hedge fund
managers benefit from.

So they didn`t closed one of the special interest tax loopholes. It`s
there because of some powerful lobby interest. Instead, they`re cutting
education for kids and increase in cost to seniors squeezing family.

So, you know, when Speaker Boehner and Senator McConnell say, you know,
they really found the truth and now they care about working families. The
reality is, they are hitting working families really hard --

SCHULTZ: Yeah.

VAN HOLLEN: -- this budget including an increase in their taxes by the
way, while providing this windfall tax break to a 5,500 people per year.

SCHULTZ: Well, it`s just underscores that they endorse inherited wealth.
I mean that`s exactly what they`re endorsing here, inherited wealth. And
people getting something for nothing.

But it seems like they are consistently misleading the American public on
how terrible the state tax is as if everybody is getting hit on it. It`s
almost like a play of fool on the American people, your thoughts?

VAN HOLLEN: Well, that`s right. In fact, it only hits two out of 1000
people. Because, look, I mean, just, you know, talk to your friends and
neighbors, how many couples have states over $10 million. It`s just a
small number of Americans and what this tells you, Ed, is what the
priorities, right, of the Republicans are.

While they`re providing this windfall break to 5,500 families, they`re
whacking everybody else in the country in the budget. They`re actually
starting to charge students interest on their student loans while they are
still going to college. They`re reopening the donut hole for seniors in
the prescription drug year which will increase their cost.

So while they`re squeezing seniors and students and working families,
they`re giving this windfall break to a very --

SCHULTZ: No doubt.

VAN HOLLEN: -- few families. And the problem is, we`ve got increasing
income gap and the wealth gap is compound and even further to the inherited
wealth.

SCHULTZ: All right.

VAN HOLLEN: That`s not America. That`s not where everyone gets a chance
to make it on their own merits.

SCHULTZ: Yeah - we got - you bet. Congressman, good to have you with us
tonight. Have a great Easter weekend. I appreciate your time with THE ED
SHOW.

That`s THE ED SHOW. I`m Ed Schultz. POLITICS NATION with Reverend Al
Sharpton starts right now. Good evening, Rev.

END TRANSCRIPT

Source