Clinton proposes tax hikes for wealthy

WASHINGTON: Democratic US presidential nominee Hillary Clinton yesterday proposed raising taxes on inherited property to 65% for the largest estates as she bolstered plans for tax hikes on the wealthiest Americans.

The estate tax, levied on property such as cash, real estate, stock or other assets transferred from deceased persons to heirs, is imposed only on inherited assets worth $5.45 million or more for an individual.

Clinton’s plan would raise the estate tax from 40% to 45%.

But the biggest estates would face rates of up to 65% for property valued at more than $500m for a single person or $1 billion per couple.

Clinton’s proposed top rate of 65% would be the highest estate tax since the 1980s, and is in line with a proposal made by her former rival for the party’s presidential nomination, US Senator Bernie Sanders.

Her campaign said the boosted estate tax and a change in the rules to tax capital gains associated with inherited assets would help pay for other proposals to benefit middle-class people, such as expanding a tax credit for working parents.

The nonpartisan Centre on Budget and Policy Priorities said only the estates of the wealthiest 0.2% of Americans, about two out of every 1 000 people who die, currently owe any estate tax because the first $5.45m per person is exempt. Clinton would lower that exemption to $3.5m. – Reuters