Sander forwards estate tax fix that inflicts pain on the wealthy

Sen. Bernie Sanders (I-Vt.) on Thursday introduced legislation reinstating the estate tax at 2009 levels for almost everyone but the super wealthy. 

The bill levies a 45 percent tax on estates worth more than $3.5 million ($7 million for couples), but slaps a 50 percent tax on estates worth between $10 million and $50 million. Estates worth more than $50 million would incur a 55 percent tax, and estates with assets totaling at least $500 million would be taxed at 65 percent rate. 

If enacted, the changes would be retroactive to the beginning of the year, when the estate tax repeal took effect. 

Lee Farris, estate tax policy coordinator for United for a Fair Economy, a group that represents high-wealth individuals, supports the bill. 

"This is the kind of commonsense solution that balances the desire to protect small businesses and farms, while ensuring that the super-wealthy give back to support the country that made their prosperity possible," she said in prepared remarks.

The fate of the estate tax is expected to be debated when the Senate acts on legislation providing tax relief and loan opportunities to small business. Votes on the bill are expected next week. 

Farris plans to mobilize her members into supporting the legislation and seek co-sponsors for the bill. Sens. Tom Harkin (D-Iowa) and Sheldon Whitehouse (D-R.I.) sponsored the bill with Sanders.