Clinton proposes bumping up estate tax

Clinton proposes bumping up estate tax
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Hillary ClintonHillary Diane Rodham ClintonThree legal scholars say Trump should be impeached; one thinks otherwise Report: Barr attorney can't provide evidence Trump was set up by DOJ Jayapal pushes back on Gaetz's questioning of impeachment witness donations to Democrats MORE is proposing to tax estates valued at over $1 billion per couple at a 65 percent rate.

The campaign described the proposal on an updated webpage after detailing it to the non-partisan Committee for a Responsible Federal Budget (CRFB).

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The Democratic presidential nominee previously said that she would restore the estate tax to its 2009 parameters. Doing so would raise the rate from 40 percent to 45 percent, and lower the amount that's exempt from the tax from $10.9 million per couple to $7 million per couple.

Now the Clinton campaign says that the wealthiest estates would be taxed at even higher rates than 45 percent, with the highest rate being 65 percent.

GOP presidential nominee Donald TrumpDonald John TrumpStates slashed 4,400 environmental agency jobs in past decade: study Biden hammers Trump over video of world leaders mocking him Iran building hidden arsenal of short-range ballistic missiles in Iraq: report MORE's campaign criticized Clinton's proposed estate-tax increase, calling it hypocritical.

“It is the height of hypocrisy for Hillary Clinton to offer an even more dramatic hike in the death tax at the same time she uses exotic tax loopholes reserved for the very wealthy to exempt her Chappaqua estate," Trump campaign senior communications adviser Jason Miller said in a statement.

"Even when it comes to her own proposed tax increases, there’s one set of rules for Hillary Clinton and another for everyone else.” 

The Clinton campaign responded to Miller's statement, saying that Clinton's tax rate would increase under her plan.

"The Clintons paid a combined federal, state, and local effective tax rate of 43.2% this year, and under our proposals, that would go up," Clinton spokesperson Julie Wood said. "No one knows what taxes Donald Trump pays or doesn't pay because he refuses to release his tax returns."
 
Trump has proposed repealing the estate tax but would require some capital gains held until death to be taxed. Clinton has criticized Trump's plan to repeal the estate tax, saying it would create a windfall for his own family.

The Clinton campaign also proposed on its updated webpage to end a tax "loophole" that allows capital gains to not be taxed when they are passed onto heirs.  

The proposal "will include exemptions to ensure this change only affects the high-income families who by far benefit the most from this loophole, and protects middle-class families," the campaign said on its website.

"And it will contain careful protections and flexibility for small and closely-held businesses, farms and homes, and personal property and family heirlooms."

The campaign also said Clinton "would limit the tax benefits of 'like-kind exchanges,' which prevents capital gains taxation on certain sales."

The revenue raised from Clinton's latest tax proposals would be used to pay for Clinton's proposals to provide tax relief to small businesses and expand the child tax credit, the CRFB said.

- updated at 6:04 p.m.