The House, at about 1:30 a.m. yesterday, voted 230 to 180 to raise the minimum wage to $7.25 an hour, from the $5.15 rate on the books since 1997. The bill also would exempt from taxation all estates worth as much as $5 million -- or $10 million for a married couple -- and apply a 15 percent tax rate to inheritances above that threshold and as much as $25 million. For estates exceeding $25 million in value, the tax rate would be 30 percent.
If you are reading this there is about a one in a million chance you will benefit from this bill. There is a handful of superrich that will benefit from the inheritance tax cut. If you benefit from the increase in the minimum wage, your share of fees and/or taxes to make up the cuts for the rich will cost you money.
To understand the deception The Center for American Progress has an excellent analysis, as does Responsible Wealth.
Currently, only those who leave estates greater than $2 million, or $4 million for couples, must pay the tax. In 2006, it is estimated that 0.27% of all estates in the U.S. will pay estate tax, meaning 99.73% of Americans can pass 100% of their estates to heirs tax free. Repealing the estate tax is estimated to cost $1 trillion over the first ten years of full repeal.
For a previous post: Inheritance Tax-Responsible Wealth
Any member of Congress who claims to aid low income families with this legislation is a fraud.