Paul L. Caron
Dean





Thursday, February 3, 2022

Tax-Free Inheritances Fuel America’s New $73 Trillion Gilded Age

Bloomberg, Tax-Free Inheritances Fuel America’s New $73 Trillion Gilded Age:

Almost half of all U.S. wealth transferred over the next quarter century will come from the top 1.5% of households.

Americans can expect to inherit $72.6 trillion over the next quarter century, more than twice as much as a decade ago, in the latest indication of how soaring markets are poised to bolster the next generation of the ultra-rich.

Almost half of all U.S. wealth transferred from the end of 2020 through 2045 will come from the top 1.5% of households, according to estimates from research firm Cerulli. Using trusts and other techniques, the wealthiest Americans can shield the bulk of their fortunes from the federal government’s 40% estate and gift tax levy. President Joe Biden and Democrats in Congress have so far failed in efforts to plug such loopholes and otherwise boost inheritance taxes.

Bloomberg

The growth in dynastic fortunes has become a flash point in Washington, with the advocacy group Americans for Tax Fairness warning in a reportreleased Wednesday about the “return to Gilded Age levels of wealth concentration” [Dynasty Trusts: Giant Tax Loopholes That Supercharge Wealth Accumulation].

The 2017 Republican tax overhaul, which included a doubling of the amount the wealthy can pass to heirs without triggering the estate tax, caused revenue collected from the levy to plunge by more than half in the span of two years, with just 1,275 families paying $9.3 billion in 2020, according to Internal Revenue Service data.

https://taxprof.typepad.com/taxprof_blog/2022/02/tax-free-inheritances-fuel-americas-new-73-trillion-gilded-age.html

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