Politics

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

Published

9 years ago

April 15, 2015

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 Wednesdays 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.

___

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.

___

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

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MAYOR BREED ANNOUNCES $53 MILLION FEDERAL GRANT FOR SAN FRANCISCO’S HOMELESS PROGRAMS

San Francisco, CA – Mayor London N. Breed today announced that the U.S. Department of Housing and Urban Development (HUD) has awarded the city a $53.7 million grant to support efforts to renew and expand critical services and housing for people experiencing homelessness in San Francisco.

Published

5 days ago

April 20, 2024

Oakland Post

Mayor London Breed

FOR IMMEDIATE RELEASE:

Wednesday, January 31, 2024

Contact: Mayor’s Office of Communications, mayorspressoffice@sfgov.org

***PRESS RELEASE***

MAYOR BREED ANNOUNCES $53 MILLION FEDERAL GRANT FOR SAN FRANCISCO’S HOMELESS PROGRAMS

HUD’s Continuum of Care grant will support the City’s range of critical services and programs, including permanent supportive housing, rapid re-housing, and improved access to housing for survivors of domestic violence

San Francisco, CA – Mayor London N. Breed today announced that the U.S. Department of Housing and Urban Development (HUD) has awarded the city a $53.7 million grant to support efforts to renew and expand critical services and housing for people experiencing homelessness in San Francisco.

HUD’s Continuum of Care (CoC) program is designed to support local programs with the goal of ending homelessness for individuals, families, and Transitional Age Youth.

This funding supports the city’s ongoing efforts that have helped more than 15,000 people exit homelessness since 2018 through City programs including direct housing placements and relocation assistance. During that time San Francisco has also increased housing slots by 50%. San Francisco has the most permanent supportive housing of any county in the Bay Area, and the second most slots per capita than any city in the country.

“In San Francisco, we have worked aggressively to increase housing, shelter, and services for people experiencing homelessness, and we are building on these efforts every day,” said Mayor London Breed. “Every day our encampment outreach workers are going out to bring people indoors and our City workers are connecting people to housing and shelter. This support from the federal government is critical and will allow us to serve people in need and address encampments in our neighborhoods.”

The funding towards supporting the renewal projects in San Francisco include financial support for a mix of permanent supportive housing, rapid re-housing, and transitional housing projects. In addition, the CoC award will support Coordinated Entry projects to centralize the City’s various efforts to address homelessness. This includes $2.1 million in funding for the Coordinated Entry system to improve access to housing for youth and survivors of domestic violence.

“This is a good day for San Francisco,” said Shireen McSpadden, executive director of the Department of Homelessness and Supportive Housing. “HUD’s Continuum of Care funding provides vital resources to a diversity of programs and projects that have helped people to stabilize in our community. This funding is a testament to our work and the work of our nonprofit partners.”

The 2024 Continuum of Care Renewal Awards Include:

$42.2 million for 29 renewal PSH projects that serve chronically homeless, veterans, and youth
$318,000 for one new PSH project, which will provide 98 affordable homes for low-income seniors in the Richmond District
$445,00 for one Transitional Housing (TH) project serving youth
$6.4 million dedicated to four Rapid Rehousing (RRH) projects that serve families, youth, and survivors of domestic violence
$750,00 for two Homeless Management Information System (HMIS) projects
$2.1 million for three Coordinated Entry projects that serve families, youth, chronically homeless, and survivors of domestic violence

In addition, the 2023 CoC Planning Grant, now increased to $1,500,000 from $1,250,000, was also approved. Planning grants are submitted non-competitively and may be used to carry out the duties of operating a CoC, such as system evaluation and planning, monitoring, project and system performance improvement, providing trainings, partner collaborations, and conducting the PIT Count.

“We are very appreciative of HUD’s support in fulfilling our funding request for these critically important projects for San Francisco that help so many people trying to exit homelessness,” said Del Seymour, co-chair of the Local Homeless Coordinating Board. “This funding will make a real difference to people seeking services and support in their journey out of homelessness.”

In comparison to last year’s competition, this represents a $770,000 increase in funding, due to a new PSH project that was funded, an increase in some unit type Fair Market Rents (FMRs) and the larger CoC Planning Grant. In a year where more projects had to compete nationally against other communities, this represents a significant increase.

Nationally, HUD awarded nearly $3.16 billion for over 7,000 local homeless housing and service programs including new projects and renewals across the United States.

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Oakland Post: Week of April 17 – 23, 2024

The printed Weekly Edition of the Oakland Post: Week of April 17 – 23, 2024

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6 days ago

April 19, 2024

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Barbara Lee

Congresswoman Barbara Lee Issues Statement on Deaths of Humanitarian Aid Volunteers in Gaza 

On April 2, a day after an Israeli airstrike erroneously killed seven employees of World Central Kitchen (WCK), a humanitarian organization delivering aid in the Gaza Strip, a statement was release by Rep. Barbara Lee (D-CA-12). “This is a devastating and avoidable tragedy. My prayers go to the families and loved ones of the selfless members of the World Central Kitchen team whose lives were lost,” said Lee.

Published

1 week ago

April 17, 2024

Oakland Post

Congresswoman Barbara Lee

By California Black Media

“This is a devastating and avoidable tragedy. My prayers go to the families and loved ones of the selfless members of the World Central Kitchen team whose lives were lost,” said Lee.

The same day, it was confirmed by the organization that the humanitarian aid volunteers were killed in a strike carried out by Israel Defense Forces (IDF). Prior to the incident, members of the team had been travelling in two armored vehicles marked with the WCF logo and they had been coordinating their movements with the IDF. The group had successfully delivered 10 tons of humanitarian food in a deconflicted zone when its convoy was struck.

“This is not only an attack against WCK. This is an attack on humanitarian organizations showing up in the direst situations where food is being used as a weapon of war. This is unforgivable,” said Erin Gore, chief executive officer of World Central Kitchen.

The seven victims included a U.S. citizen as well as others from Australia, Poland, the United Kingdom, Canada, and Palestine.

Lee has been a vocal advocate for a ceasefire in Gaza and has supported actions by President Joe Biden to airdrop humanitarian aid in the area.

“Far too many civilians have lost their lives as a result of Benjamin Netanyahu’s reprehensible military offensive. The U.S. must join with our allies and demand an immediate, permanent ceasefire – it’s long overdue,” Lee said.