Donald Trump suggested to an audience in Iowa Wednesday that family farmers will pay a 65 percent estate tax rate under Hillary Clinton's proposed tax plan, making it impossible for their children to "hold onto your farms."
But how does that mesh with the facts?
At the event, Trump said: “By the way, for the family farmers, Hillary Clinton’s plan proposes an estate tax of 65 percent. Sixty-five percent. So, you are going to have an estate tax of up to 65 percent. Lots of luck having your kids hold on to your farms -- not going to happen.”
ABC News' grade: Mostly false
Explanation: Under Clinton’s proposed tax plan, inheritances worth more than $500 million from an individual or $1 billion from a couple would be taxed at a 65 percent rate. But almost certainly no “family farm” would qualify for the top rate.
“In previous discussions of this issue, opponents of the estate tax were unable to find a single case where a family farm had to be sold to pay estate taxes,” Roberton Williams from the Urban-Brookings Tax Policy Center told ABC News.
Currently, every estate worth over $5.45 million from an individual or $10.9 million from a couple is taxed at a flat rate of 40 percent.
Clinton’s proposal would lower that threshold: estate taxes would apply to inheritances worth more than $3.5 million from an individual or $7 million from a couple and the tax rate would range from 45 percent to 65 percent.
Therefore family farms worth less than $3.5 million (or $7 million if passed down from a couple) would be exempt from Clinton’s estate tax.
from ABC News: Politics http://ift.tt/2cMeUYm
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