Let’s say you are age 65 with four grown children. You have worked, saved and invested all your life. You were prudent in protecting your family and have a good amount of life insurance. Your home of thirty years is paid off and, of course, has risen in value. All your life you diligently paid your taxes including gains on investments.
Your net worth is $4 million dollars which includes your home value, life insurance, your car and personal possessions, your 401(k) plan which is the source of your retirement income and your savings. You have never lived like a millionaire and don’t act like it and don’t feel wealthy, but according to some politicians you are virtually a greedy billionaire.
Bernie Sanders, introduced legislation that would require anyone who inherits more than $3.5 million to pay an estate tax.
He would also increase tax rates so anyone who inherits an estate or assets worth between $3.5 million and $10 million faces a 45 percent tax rate; anyone who inherits an estate worth between $10 million and $50 million faces a 50 percent tax rate, and anyone who inherits an estate worth more than $50 million faces a 55 percent tax rate.
Based on the above example, the 65-year-old with $4 million instead of leaving the estate to his children, must pay $225,000 in federal estate taxes (plus any state taxes).
How is this fair? Why should government confiscate any portion of your life savings? But this is the way Bernie Sanders and the far left think.
And don’t be fooled, to support a welfare state, $3.5 million is the starting point. Redistribution of what you earned and saved for you and your family is coming at you.