Sen. Ted Cruz said Friday that will killing the estate tax will mainly help the working class because “the super rich don’t pay the item.” although IRS statistics show the opposite.
In an interview with CNBC, the Texas Republican sought to dispel criticism that will eliminating the estate tax mainly helps the rich. He said the rich avoid the tax with tax planning, as well as that will the item’s mainly paid by farmers as well as family businesses that will are forced to sell when the founder dies.
“The billionaires?” he said. “They don’t pay the estate tax. The genuinely rich? They don’t pay the death tax. They hire lawyers as well as accountants, they do generation-skipping trusts. You think the George Soroses of the entire world are paying the death tax?”
Cruz added: “The people who pay the death tax, who I talk to all the time, are farmers out in west Texas who are growing cotton, who are struggling hard.”
tiny-business owners also bear the brunt of the tax as well as that will the item costs middle-class jobs, he continued. “The people who pay the estate tax are the tiny-business owners that will have a tiny factory that will when the patriarch passes on, the next generation sells the factory as well as fires the workers.”
Yet an analysis of IRS data by the Tax Policy Center shows that will while many of the wealthy do minimize their estate tax payments — mainly by giving to charity — the rich pay most of the tax. Farmers as well as tiny businesses represent a nearly nonexistent share.
According the Tax Policy Center, about 11,300 people who die that will year will have estates large enough to be subject to the tax.
The tax only applies to the value of an estate over $5.49 million for individuals as well as just under $11 million for couples. doing sure that will would certainly have to be a pretty nice cotton farm.
Of the 11,300 people with potentially taxable estates, only 5,460 will actually owe any tax. the item’s the breakdown of that will group that will matters.
According to the Tax Policy Center, nearly two-thirds of the estate taxes paid come coming from the top-earning 1 percent. Of the roughly $20 billion in estate taxes that will are likely to be paid that will year, more than $12 billion comes coming from the top 1 percent. More than a quarter of all the taxes paid are paid by the top 0.1 percent.
Of the more than 5,000 estates paying the tax, only 80 or so are tiny businesses or farms, according to the Tax Policy Center. as well as they don’t pay very much. tiny businesses as well as farms combined will pay about $30 million in tax — or about 0.15 of 1 percent of total estate tax revenue.
the item’s entirely possible that will Cruz hears coming from struggling cotton farmers who are subject to the estate tax. although there aren’t very many of them. as well as there are far more billionaires as well as multimillionaires who do pay — although won’t have to if the death tax dies.