Center on Budget and Policy Priorities

Tax — Federal

Berkley Estate Tax Bill Would Add Billions to Deficit While Benefiting Only Wealthiest 1 in 500 Estates

“A new estate tax bill [H.R. 3905] introduced by Representative Shelley Berkley (D-NV) and others would cost $119 billion more over the first decade (2012-2021) than extending the tax under its current rules…yet would benefit only the nation’s wealthiest 0.2 percent of estates since they are the only ones subject to the tax under the current rules….

“[I]t is imperative that the permanent estate tax solution be fiscally responsible and fit the economic and budgetary challenges the nation faces today, as well as the even more daunting fiscal challenges it will encounter in the decades ahead. H.R. 3905 fails these tests.” Read more

Topics

Basics

The income tax on individuals and the payroll tax, which is deducted from workers' wages and used to help finance Social Security and Medicare, together funded 75 percent of federal spending in 2007. Business or corporate taxes contributed another 14 percent. Other federal taxes include the estate tax on the heirs of large estates.

Policy Basics:
- The 2001 and 2003 Tax Cuts
- Where Do Our Federal Tax Dollars Go?
- The Estate Tax
- The Earned Income Tax Credit
- Deficits, Debt, and Interest

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The Center analyzes major tax proposals, examining their likely effects on the economy and on the government’s ability to address critical national needs, especially over the long term. We place particular emphasis on the effects of tax proposals on households at different income levels. In addition, we analyze trends in the level of federal revenues, income distribution, and tax burdens.