Van Hollen proposes raising estate tax to boost Social Security

Van Hollen proposes raising estate tax to boost Social Security
© Stefani Reynolds

Sen. Chris Van HollenChristopher (Chris) Van HollenHillicon Valley: Twitter flags Trump tweet for 'glorifying violence' | Cruz calls for criminal investigation into Twitter over alleged sanctions violations | Senators urge FTC to investigate TikTok child privacy issues Democratic senators urge regulators to investigate Instacart over 'tip baiting' Senate Dems press DOJ over coronavirus safety precautions in juvenile detention centers MORE (D-Md.) on Tuesday unveiled legislation that would boost the estate tax to raise funds to shore up Social Security.

Van Hollen's "Strengthen Social Security by Taxing Dynastic Wealth Act" would undo President TrumpDonald John TrumpTrump says inviting Russia to G7 'a question of common sense' Pentagon chief does not support invoking Insurrection Act Dershowitz: Does President Trump have power to declare martial law? MORE's tax law's treatment of estate taxes, restoring the estate and gift tax to their 2009 levels.

"In 2017, Republicans in Congress secured their latest massive giveaway on the estate tax – delivering a $4.4 million tax cut per couple to just 1,900 estates in the entire country at the same time they refused to support vital national priorities. That was unconscionable, and we must return the estate tax to a more reasonable level,” said Van Hollen in a statement on the bill.

ADVERTISEMENT

“I can think of no better way to use ... that revenue than to strengthen Social Security," he added.

The bill would raise the top estate and gift tax rates from 40 percent to 45 percent. The first $3.5 million of an individual's estate would be exempt from estate taxes, with the threshold set at $7 million for married couples.

Van Hollen touted the bill earlier Tuesday, when he spoke at the "Taxing the (Very) Rich" conference, hosted by the Economic Policy Institute, a progressive think tank.

“This one measure will close the 21 percent shortfall," he said about boosting Social Security.

The Maryland senator is only the latest Democratic lawmaker to propose higher taxes on the wealthy or corporations to pay for social programs.

Sen. Elizabeth WarrenElizabeth WarrenThe Hill's Morning Report - Protesters' defiance met with calls to listen Biden wins DC primary Warren asks Pentagon IG to probe military role in Trump's protest response MORE (D-Mass.), a 2020 contender, has called for an annual special tax on those with a net worth surpassing $50 million. Earlier this week, Sen. Bernie SandersBernie SandersBiden wins DC primary Biden wins Montana primary Biden wins New Mexico primary MORE (I-Vt.), also running for the Democratic nomination, proposed erasing $1.6 trillion in U.S. student debt with a tax on Wall Street that would raise $2 trillion over 10 years.

At Tuesday's event, Van Hollen also floated a 10 percent surtax on incomes above $2 million to raise funds to shore up K-12 education.

“Our funding system is based off of inequality," Van Hollen said at the conference. "The federal government is falling hugely short in supporting K-12. We must deal with this fundamental inequity."