Estate Tax Reform Bill

[Sam Spade]

Estate Tax Reform Bill

Effective FY 2008, Clause 3 of the Tax Increase Act is amended as follows:
Each portion of the value of the estate shall be taxed at the following rates, with each rate corresponding to the tax rate on only the portion of the estate that falls in the appointed range:

a) $0-$5,000,000 – 0%
b) $5,000,001-$10,000,000 – 1%
c) $10,000,001-$17,500,000 – 3%
d) $17,500,001-$25,000,000 – 6%
e) $25,000,001-$50,000,000 – 10%
f) $50,000,001-$100,000,000 – 15%
g) $100,000,001 and above – 25%
h) Farmers' non-residential property shall be taxed at 50% the normal tax rate above $10,000,000.

(Sponsor: Brandon H)

[Ebowed]

This bill is a trojan horse.  It is actually a notable decrease in the estate tax.  I will be proposing an amendment to fix that later

[Verily]

I agree with Ebowed. I would also like to see a simplification of the tax code, not a complication, which is what this would be even if all of the taxation rates therein were doubled (thus more or less maintaining the same tax rate overall).

[Sensei]

I agree with Sens. Verily and Ebowed here, and from the look of it so far, I will not be voting for the implementation of this without drastic changes.

[Sam Spade]

FYI, these are the present Atlasian estate tax rates, per F.L. 15-4 here:

https://uselectionatlas.org/AFEWIKI/index.php/Tax_Increase_Act

a) $0-$5,000,000 – 0%

b) $5,000,001-$10,000,000 – 3%

c) $10,000,001-$17,500,000 – 4%

d) $17,500,001-$25,000,000 – 5%

e) $25,000,001-$50,000,000 – 7.5%

f) $50,000,001-$100,000,000 – 10%

g) $100,000,001 and above – 12.5%

h) Farmers' non-residential property shall be taxed at 50% the normal tax rate.

[Verily]

Very well, then, I propose an amendment to strike sections b) through g) and replace them with the following:

b) $5,000,001-$20,000,000 – 10%
c) $20,000,001-$50,000,000 – 20%
d) $50,000,001 and above – 40%

It is absurd that our current estate tax rate is so low.

[Sensei]

Senator Verily has it right, methinks.

[Small Business Owner of Any Repute]

Could someone enlighten me as to the current levels of the Estate Tax?

[Verily]

Could someone enlighten me as to the current levels of the Estate Tax?

In the fictional United States, federally, $2,000,000 are subtracted from the estate, then the following calculations are made (quoting Wikipedia):

You must be logged in to read this quote.

Thus, Atlasian tax rates were substantially reduced by the initial bill to the point of being negligibly low (though it may be that those passing that bill were not aware that they were slashing taxes on the extremely rich for no good reason). My amendment would still have the tax rate well below that imposed by the hypothetical United States, but it is certainly a step forward.

[Ebowed]

I don't see why the rate needs to be lower than America's.  In fact I think it should be higher.

Also, to clarify why the rate is what it is currently, I proposed a tax increase bill when President last year.  We all assumed that we did not have an estate tax, although now I can't figure out why we would assumed as much.  Earlier this year I had sponsored a bill to create new and increase existing tax rates on inheritance, although conservatives amended it to lower the rates, which is what the bill in its current form is.

[Sam Spade]

We are now voting on the following amendment:

Very well, then, I propose an amendment to strike sections b) through g) and replace them with the following:

b) $5,000,001-$20,000,000 – 10%
c) $20,000,001-$50,000,000 – 20%
d) $50,000,001 and above – 40%

Please vote Aye, Nay or Abstain.


Nay.

[Ebowed]

Aye

[Verily]

Aye

[Small Business Owner of Any Repute]

As far as I understand it, the Verily Amendment is still a marked decrease in Estate Tax rates, yes?

[Verily]

As far as I understand it, the Verily Amendment is still a marked decrease in Estate Tax rates, yes?

A substantial increase in current Atlasian rates, but a substantial decrease from US rates, yes. In the long run, I would like to restore estate tax levels to similar to those in the United States, but I'm willing to do so in incremental steps.

[afleitch]

Nay

[minionofmidas]

Step in the right direction compared to the bill, then. Aye.

[Ebowed]

I think we have the votes to increase it to US levels.

[Hatman 🍁]

aye

[Sensei]

aye

[Brandon H]

Nay

[Verily]

I think we have the votes to increase it to US levels.

Perhaps, though I certainly wouldn't wish the tangled mess that is the US system on anyone.

[Small Business Owner of Any Repute]

I'm not exactly sure I even like the concept of estate taxes in general—retaxing what's already been taxed.

I'll abstain here.

[Јas]

Result on Verily's Amendment
Aye: 5 (Ebowed; Verily; Lewis; Earl; Sensei)
Nay: 3 (Sam; afleitch; Brandon)
Abstain [Voted]: 1 (Moderate)
Abstain [Didn't Vote]: 1 (Rob)

With 5 Ayes and 1 declared abstention, the amendment passes.

[Јas]

As greater than 14 days have passed since debate began on this bill, in accordance with the terms of the OSPR, a motion of cloture will need to be brought and passed to bring this matter to a final vote.