Sanchez introduces deficit-reducing estate tax fix

The plan applies a 45 percent tax on estates worth between $3.5 million and $10 million. Estates between $10 million and $50 million would taxed at 50 percent and estate above $50 million would be taxed at 55 percent.   

The proposal also applies a 10 percent surtax on estates worth more than $500 million, $1 billion for couples. 

"Millionaires and billionaires need to pay their fair share in estate taxes, especially at a time when we have a record-breaking national debt," Sanchez said in prepared remarks. "Tax breaks under George W. Bush favored the wealthy and contributed to a growing gap between the very rich and everyone else. It's time they pay their fair share." 

The bill also closes so-called loopholes for estate and gift taxes by requiring consistent valuation for transfer and income tax purposes; modifying rules on valuation discounts; and requiring a ten-year minimum term for Grantor Retained Annuity Trusts. The administration's Office of Management and Budget estimate that closing these provisions will raise approximately $24 billion over the next ten years. 

In addition, the legislation allows for value of family farms to be lowered by up to $3 million for estate tax purposes, and provides increased relief for conservation easements.

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