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FACT CHECK: Estate Tax Hits Fewer Than 1 Percent of Estates

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 In this March 17, 2015 file photo, Sen. John Thune, R-S.D. speaks to reporters on Capitol Hill in Washington. The federal estate tax inspires a lot of heated political rhetoric for a tax that very few people actually pay. The House is scheduled to vote this week on a bill to repeal the estate tax, part of a package of bills highlighting Wednesday’s deadline to file income tax returns. Thune is the sponsor of a Senate bill repealing the estate tax. (AP Photo/Molly Riley, File)

In this March 17, 2015 file photo, Sen. John Thune, R-S.D. speaks to reporters on Capitol Hill in Washington. (AP Photo/Molly Riley, File)

STEPHEN OHLEMACHER, Associated Press

WASHINGTON (AP) — The federal estate tax inspires a lot of heated political rhetoric for a tax that very few people actually pay.

The House is scheduled to vote this week on a bill to repeal the estate tax, part of a package of bills highlighting Wednesday’s deadline to file income tax returns.

The federal tax on estates has been around in various forms since 1916. Republicans have long called for repealing it; they refer to it as the “death tax.” They claim it prevents small business owners and family farmers from passing businesses on to their heirs.

Democrats say repealing the tax is a giveaway to the rich, since the only families that pay it have many millions in assets.

The bill has little chance of becoming law. Senate Democrats appear to have enough votes to block it and President Barack Obama wants to increase the estate tax, not eliminate it. The White House threatened to veto the bill Tuesday.

Nevertheless, the House is expected to easily pass the bill, providing both political parties with a campaign issue in the 2016 elections for Congress and president.

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THE CLAIMS: “The death tax is the wrong tax at the wrong time and hurts the wrong people. It’s the number one reason why family-owned businesses aren’t passed down to the next generation. It is Washington’s most immoral and calculated attack on the American Dream.” — Rep. Kevin Brady, R-Texas, sponsor of a House bill repealing the estate tax.

“For too long the federal government has forced grieving families to pay a tax on their loved one’s life savings that has been built from income already taxed when originally earned. Currently more than 70 percent of family businesses do not survive to the second generation, and 90 percent of family businesses do not survive to the third generation.” —Sen. John Thune, R-S.D., sponsor of a Senate bill repealing the estate tax.

“One of the laws that my friends on the other side of the aisle are trying to pass right now is a new, deficit-busting tax cut for a fraction of the top one-tenth of 1 percent. That’s fewer than 50 people here in Kentucky who would, on average, get a couple million dollars in tax breaks.” — Obama, speaking April 2 in Louisville.

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THE FACTS: The federal tax rate on estates is 40 percent, but big exemptions limit the share of estates that pay it to fewer than 1 percent.

This year, the exemption is $5.43 million for a single person. Married couples can exempt up to $10.9 million. Larger estates pay taxes only on the amounts above these thresholds.

A total of 5,400 estates are expected to pay the tax this year — out of about 2.6 million deaths, according to the nonpartisan Joint Committee on Taxation, which provides official estimates for Congress. That’s 0.2 percent of all deaths in the U.S.

The exemption amounts increase with inflation, so the number of estates paying the tax each year is expected to grow slowly, reaching 5,500 in 2020 and staying there through 2024, according to JCT.

Each year, the estate tax generates less than 1 percent of federal tax receipts. But over time, it adds up.

Repealing the estate tax would reduce federal tax revenues by $269 billion over the next decade, according to JCT. The House bill does not include spending cuts to offset the lost revenue, so it would be added the deficit.

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BACKDROP: Republicans say that some business owners get hit with the tax because they have valuable assets that don’t necessarily generate a lot of cash. They cite family farms, which may sit on valuable land but don’t generate enough money to pay hefty estate taxes unless heirs sell some or all the land.

“The appreciated value of land is phantom income. The value is locked in the asset, so if there’s no intent to sell the land, there’s no real income to tax other than the income the land actually produces, and that’s already taxed,” said Sen. Charles Grassley, R-Iowa.

Democrats counter that eliminating the estate tax would enable investors to amass vast sums of wealth that might never be taxed as long as they held it until they died and passed it to their heirs, who could receive it tax-free.

“The principle here is not to create a permanent aristocracy,” said Rep. Richard Neal, D-Mass.

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Follow Stephen Ohlemacher on Twitter: http://twitter.com/stephenatap

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Activism

Oakland Post: Week of September 30 – October 6, 2026

The printed Weekly Edition of the Oakland Post: Week of September 30 – October 6, 2026

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Economy

Poll: Becerra Widens His Lead Over Hilton; Californians Split on Wealth Tax

A new Public Policy Institute of California poll shows Democrat Xavier Becerra leads Republican Steve Hilton by 22 points in California’s governor’s race, with 60% of likely voters supporting Becerra compared to 38% for Hilton. The September survey also reveals Californians are closely divided on a proposed one-time tax on billionaires, with 52% of likely voters in favor of Proposition 40. Affordability issues are a major factor for voters. Read more to learn about the poll’s additional findings on voter sentiment.

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Democrat Xavier Becerra and Republican Steve Hilton.

Democrat Xavier Becerra holds a 22-point lead over Republican Steve Hilton in California’s governor’s race, while voters remain closely divided over a proposed one-time tax on billionaires, according to a new Public Policy Institute of California poll.

The September PPIC survey found that 60% of likely voters support Becerra, compared with 38% for Hilton. His lead is actually narrower than it was in July, when he led Hilton 61% to 36%.

Becerra leads among independent voters, with 57% supporting him compared with 38% for Hilton. Party loyalty remains strong, with 93% of Democratic likely voters backing Becerra and 92% of Republicans supporting Hilton. 

Hilton leads in the Central Valley, where 52% of likely voters support him compared with 46% for Becerra.

Affordability remains a major factor: 65% of likely voters say candidates’ plans to address cost-of-living issues are “very important” to their vote.

“Affordability continues to be top of mind for Californians when considering their choice for governor,” said Mark Baldassare, PPIC Statewide Survey director and Miller Chair in Public Policy.

The poll also found a narrow split over Proposition 40, a proposed one-time tax of up to 5% on taxpayers with assets exceeding $1 billion. Fifty-two percent of likely voters said they would vote yes, while 46% said they would vote no.

Support for the wealth tax varies sharply by party. Seventy-two percent of Democrats favor Proposition 40, compared with 46% of independents and 21% of Republicans.

Two competing measures also drew majority support. Fifty-one percent back Proposition 41, while 54% support Proposition 42, both of which could affect the wealth-tax proposal.

The findings come as Californians express broader frustration with the state’s political direction. Seventy-one percent of likely voters expect bad economic times in California over the next year.

“Californians are clearly grumpy and aren’t enamored with any particular political party or movement,” Baldassare said.

The survey interviewed 1,745 California adults, including 1,103 likely voters, from Sept. 4-10. The margin of error for likely voters is plus or minus 3.8 percentage points.

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Community

LIVE FREE Sunday Dinner Brings Faith, Fellowship and Civic Conversation to Oakland

Approximately 50 members and guests gathered at Imani Community Church for a LIVE FREE Sunday Dinner, sharing a meal with Pastor Michael McBride. The event, hosted by Imani Community Church Pastor Jeremy McCants, focused on faith, community preparedness, and civic participation. Participants discussed “sacred resistance” and how communities can collectively respond to challenges, including practical suggestions for emergencies. The conversation also touched upon the importance of civic engagement and voting in the upcoming election. Read more to learn about the specific actions discussed.

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Imani Social Justice Team (left to right): Angela Noel, Zakiya Jendayi and Diane Doss. Patty Hallm, Susan Burns, Diane Lewis, Pastor Michael McBride, Theresa ???, Jean Moses and Diana Bell. Front: Sloane Johnson and (man whose name I'm getting to complete the identification). Photo by Octavian Kelly.

Pastor Michael McBride joins Imani Community Church Members for Food, Faith and Conversation about Community Action

Approximately 50 members and guests of Imani Community Church gathered Sunday afternoon for a LIVE FREE Sunday Dinner, sharing a meal with Pastor Michael McBride while discussing faith, community preparedness and civic participation.

Hosted by Imani Community Church Pastor Jeremy McCants, the Sept. 20 gathering was part of LIVE FREE’s Sunday Dinner initiative, which draws upon the tradition of families, neighbors and faith communities gathering around the Sunday dinner table to break bread and discuss issues affecting their lives.

McBride is founder of LIVE FREE and lead pastor of The Way Christian Center on University Avenue in Berkeley. His Bay Area ministry has deep roots. The congregation traces its history to a church planted by McBride’s grandmother in 1969. McBride returned to the Bay Area in 2005 and became its fourth pastor.

His ministry later expanded into community organizing and national advocacy. McBride founded LIVE FREE in 2011 following organizing work in Oakland and has been involved in efforts addressing gun violence, mass incarceration and civic engagement.

At Imani, the Sunday dinner concept was simple: sit down together, eat together and talk.

McBride recalled a time when Sunday dinner provided families and neighbors an opportunity to discuss what was happening in their communities. LIVE FREE has adapted that tradition into gatherings where faith communities and neighbors can meet, communicate, and consider how to respond collectively to current challenges.

Much of Sunday’s conversation centered on what McBride described as “sacred resistance,” bringing faith into discussions about how communities respond during difficult and uncertain times.

Participants considered a fundamental question: How do we make sense of what is happening around us, and how do we move forward?

The conversation was grounded in faith and prayer, but participants also discussed action and preparation. Attendees talked about not assuming that institutions and everyday systems will always function as expected.

Practical suggestions included keeping basic food staples such as rice and beans available during emergencies. Participants cited the water crisis in Flint, Michigan, as an example as they discussed communities that have experienced disruptions to essential services.

The broader message was one of preparedness and connection: neighbors should know and support one another before a crisis occurs.

The conversation also turned to civic participation and the upcoming election.

McBride’s message was brief: “Vote. We must vote.”

Participants were encouraged to register to vote, verify that their registration is current, and learn what will appear on their ballots. The discussion included researching candidates and ballot measures, voting early, and making a voting plan.

An Oct. 3 workshop was announced as another opportunity for community members to learn more about candidates, volunteer phone banking, ballot measures, and issues before voters.

For Imani’s Social Justice Team, the gathering provided another opportunity to share information with the congregation and surrounding community regarding Imani member Zakiya Jendayi, fighting for her home, and how the community can support her by attending a vigil at her Oakland home every Tuesday from 6-7 p.m. at 3614 Randolph Ave. 94610.

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