Senate GOP Provides $1.1 Million Tax Cut to Wealthy Estates While Raising Taxes on 20 Million Working Families
The Senate GOP plan to preserve the Bush tax cuts on incomes above $250,000 already amounts to a budget-busting tax cut for the rich, and in addition to it, Minority Leader Mitch McConnell (R-KY) and Sen. Orrin Hatch (R-UT) also added another tax cut that benefits only the super-wealthy. The Hatch-McConnell plan effectively eliminates the estate tax, costing billions in revenue and giving a huge tax cut to the very wealthiest Americans, as the Center on Budget and Policy Priorities notes:
Specifically, the new Senate Republican proposal, which Senators Mitch McConnell and Orrin Hatch unveiled earlier this month, would:
Cost $119 billion more in forgone revenues over the next ten years than the Obama Administration proposal to reinstate the already generous 2009 estate-tax rules. Analysis by the Urban Institute-Brookings Tax Policy Center shows that all of the $119 billion would flow to the heirs of the estates of the wealthiest three of every 1,000 people who die, since those are the only estates that would owe any estate tax under the 2009 rules.