Senate bill S2899 has been introduced by Senator Bernie Sanders (I-Vt.) that would establish the federal estate tax rate to be 40% on all estates worth $3,500,000 but less than $10,000,000, and 50% on all estates in excess of $10,000,000 but less than $50,000,000. Thereafter the estate tax rate would be 55% on estates in excess of $50,000,000. The proposed law would also impose a 10% surtax on estates in excess of 1 billion dollars.
This legislation would replace the present exemption amount of $5,340,000.and represents a dramatic change in the people effected by federal estate taxation. Senator Sanders has stated that “a nation will not survive morally or economically when so few have so much ….while so many have so little.”