Responsible Estate Tax Act
Floor Speech
Ms. LINDA T. SÁNCHEZ of California. Madam Speaker, I rise today to introduce the "Responsible Estate Tax Act.'' This bill would provide a progressive rate structure for the Estate Tax rising from a rate of 45 percent for individual estates worth $3.5 million or more to a rate of 65 percent for estates over $500 million.
This year for the first time since 1916, the heirs to multi-million and billion dollar fortunes are able to receive their entire inheritance free of federal taxes, costing at least $14.8 billion, that's billion with a ``B,'' in lost revenue in 2010 alone. If we do not act before the end of the year, the Estate Tax will return next year at a rate of 55 percent for individual estates worth more than $1 million. Most members of this body agree that neither of those structures is ideal and this legislation is an effort to find common ground on an issue that has been a source of much controversy in recent decades.
The Estate Tax was originally instituted to ensure that the very wealthiest families, those who have benefited from the greatness of the American economy, contribute back to that system so that others have a chance to succeed as well. The Responsible Estate Tax Act fits this mission by exempting over 99.7 percent of Americans from paying any estate tax whatsoever, while ensuring that the wealthiest Americans in our country pay their fair share.
At a time when unemployment benefits, Medicaid assistance and small business incentives are being delayed in this body because of their cost, it is unconscionable to let $15 billion go tax free to the wealthiest handful of Americans. In this nation, we agree that everyone should earn his or her wealth, status, and privilege. We don't believe in an aristocracy which hoards wealth and leaves the rest of us to fight over crumbs. This proposal maintains our consensus and ensures America remains the land of opportunity.
This bill is a companion to Senate legislation authored by Senators SANDERS, HARKIN, and WHITEHOUSE and I want to commend them for their hard work and leadership on this issue.
I urge my colleagues to join me in supporting this important legislation.
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