OMB Watch has published an opinion piece that argues that short- and long-term economic considerations require a strong estate tax that serves as a source of critical revenue and reverses the concentration of wealth among the upper classes. As Congressional proposals for an estate tax fix abound, OMB Watch has endorsed The Responsible Estate Tax Act, a bill sponsored by Senator Bernie Sanders (D-VT) which would keep the 2009 estate tax exemption level of $3.5 million but would institute a more progressive rate structure. The tax rate would range between 45 percent for estates just above the exemption threshold to 65 percent for billionaires. OMB Watch suggests that this robust tax will reduce the "oligarchic concentration of wealth" and incentivize wealthy families to make contributions to charities and establish foundations in order to reduce the taxable size of their estates.
Posted by Joshua Hock, Associate Editor, Wealth Strategies Journal