Biden Twists Another Knife: Introducing a New Death Tax

Another Twist of the Knife: Introducing a New Death Tax
Andrew Stuttaford
Sat, May 1, 2021, 8:29 AM

The devil is in the details, and while, when it comes to the Biden tax plan, Old Nick is not just lurking in the small print, one particular technical-sounding change proposed by the president is rightly attracting some attention: that is the plan to scrap the long-standing principle that if someone inherits an asset, his or her basis cost in that asset for capital-gains-tax purposes is not the price that the deceased may have paid for it (or its value when it came into the deceased’s ownership) but its market value at the time of the deceased’s death, a “break” that can be justified on grounds of basic fairness. That’s the case for various reasons, but one of the most obvious is that estate tax may well, in the case of the wealthiest, also be payable on what is left after the capital-gains tax has been paid.

Under the administration’s proposed new rule, the death of the owner of an asset would, for capital-gains purposes, be treated as the sale of that asset, meaning that the deceased’s unrealized capital gains would be taxable (less a $1 million per-person exemption).

The full story at https://news.yahoo.com/another-twist-knife-introducing-death-142922364.html

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Ten Facts You Should Know About the Federal Estate Tax.

The estate tax has been an important source of federal revenue for a century, yet a number of misconceptions continue to surround it.
This report briefly describes ten facts about the federal estate tax.

(While this paper focuses on the federal estate tax, taxes on inherited wealth are also a traditional and common revenue source for states.)

Only 2 Out of Every 1,000 Estates Will Owe Federal Estate Tax in 2019

1. Roughly 2 of Every 1,000 Estates Face the Estate Tax .
Today, 99.8 percent of estates owe no estate tax at all, according to the Joint Committee on Taxation.[4] Only the estates of the wealthiest 0.2 percent of Americans — roughly 2 out of every 1,000 people who die — owe any estate tax. This is because of the tax’s high exemption amount, which has jumped from $650,000 per person in 2001 to $5.49 million per person in 2017.

2. Taxable Estates Generally Pay About One-Sixth of Their Value in Tax
Among the few estates nationwide that owe any estate tax in 2017, the effective tax rate — that is, the share of the estate’s value paid in taxes — is less than 17 percent, on average, according to the Tax Policy Center (TPC). That is far below the top statutory rate of 40 percent. Claims by repeal proponents that the estate tax consumes nearly half of an estate’s value are therefore false.

The effective rate is so much lower than the top rate for several reasons. First, estate taxes are due only on the portion of an estate’s value that exceeds the exemption level; at the 2017 exemption level of $5.49 million, a $6 million estate would owe estate taxes on $510,000 at most. Second, heirs can often shield a large portion of an estate’s remaining value from taxation through generous deductions and other discounts that policymakers have enacted over time. Further, as explained below, estates use large loopholes to avoid considerable amounts of tax.

3. Large Loopholes Enable Many Estates to Avoid Taxes
Many wealthy estates employ teams of lawyers and accountants to develop and exploit loopholes in the estate tax that allow them to pass on large portions of their estates tax-free. These strategies don’t benefit the broader economy; they only allow the wealthiest estates to avoid taxes.

For example, some estates use grantor retained annuity trusts (GRATs) to pass along considerable assets tax-free. The estate owner puts money into a trust designed to repay the estate the initial amount plus interest at a rate set by the Treasury, typically over two years. If the investment — typically stock — rises in value any more than the Treasury rate, the gain goes to an heir tax-free. If the investment doesn’t rise in value, the full amount still goes back to the estate. Such techniques have been described as a “heads I win, tails we tie” bet.

The GRAT loophole enables wealthy estates to avoid extraordinary amounts of tax when stock or other assets rise in value quickly, as has happened frequently in recent years. The tax lawyer credited with discovering the loophole estimates that it has allowed wealthy estates to avoid as much as $100 billion in estate taxes since 2000, or close to one-third of the amount that the tax raised over the period.

A top estate tax priority for policymakers should be to eliminate loopholes such as these.

4. Only a Handful of Small, Family-Owned Farms and Businesses Owe Any Estate Tax
Only roughly 80 small business and small farm estates nationwide will face any estate tax in 2017, according to TPC. TPC’s analysis defined a small-business or small farm estate as one with more than half its value in a farm or business and with the farm or business assets valued at less than $5 million. Furthermore, TPC estimates those roughly 80 estates will owe less than 6 percent of their value in tax, on average.
Only 80 Small Farms or Businesses Face Estate Tax
These findings are consistent with a 2005 Congressional Budget Office (CBO) study finding that of the few farm and family business estates that would owe any estate tax under the rules scheduled for 2009, the overwhelming majority would have sufficient liquid assets (such as bank accounts, stocks, bonds, and insurance) in the estate to pay the tax without having to touch the farm or business. The current estate tax rules are even more generous than those assumed in this analysis.

Furthermore, special estate tax provisions — such as the option to spread payments over a 15-year period and at low interest rates — allow the few taxable estates that would face any liquidity constraints to pay the tax without selling off any farm assets.

5. The Largest Estates Consist Mostly of “Unrealized” Capital Gains That Have Never Been.
Much of the money that wealthy heirs inherit would never face any taxation were it not for the estate tax. In fact, that’s one reason why policymakers created the estate tax in 1916: to serve as a backstop to the income tax, taxing the income of wealthy taxpayers that would otherwise go completely untaxed.

Under the current tax system, capital gains tax is due on the appreciation of assets, such as real estate, stock, or an art collection, only when the owner “realizes” the gain (usually by selling the asset). Therefore, the increase in the value of an asset is never subject to income tax if the owner holds on to the asset until death.

6. The Estate Tax Is a Significant Revenue Source
While the estate tax will generate less than 1 percent of federal revenue over the next decade, it is significantly more than the federal government will spend on the Food and Drug Administration, the Centers for Disease Control and Prevention, and the Environmental Protection Agency combined. Repealing the estate tax would cost $269 billion over a decade, the Joint Committee on Taxation estimates, before counting the interest costs of adding to the debt.

It would be irresponsible for policymakers to add billions more to the task of deficit reduction by cutting the taxes of a few wealthy estates while at the same time asking for further sacrifices from less-fortunate Americans.

7. Repeal Would Likely Leave Less Capital for Investment
Claims that eliminating the estate tax would encourage people to save and thereby make more capital available for investment do not take into account the impact on government borrowing. A Congressional Research Service report found that the estate tax’s net impact on private saving is unclear — it causes some people to save more and others to save less — and that its overall impact on national (private plus public) saving, a critical determinant of the amount of capital available for private investment, is likely positive. “[I]f the only objective [of eliminating the estate tax] were increased savings,” the report concluded, “it would probably be more effective to simply keep the estate and gift tax and use the proceeds to reduce the national debt.''

The reason is simple: while repealing the estate tax might lead some people — especially heirs who would receive even bigger inheritances otherwise — to work and save more, it also would lead the government to borrow more to offset the lost revenue. Government borrowing “soaks up” capital that would otherwise be available for investment in the economy. In the case of estate-tax repeal, the added government borrowing would more than outweigh any added private saving, leaving the economy no better off and quite possibly worse off.

8. Compliance Costs Are Modest
The public and private costs associated with estate tax compliance — including IRS costs to administer the tax and taxpayer costs for estate planning and administering an estate when a person dies — equaled about 7 percent of estate tax revenues in 1999. That is within the range of compliance costs for other taxes. For instance, administrative and compliance costs equal about 14.5 percent of the revenue raised by the individual and corporate income taxes and about 2 to 5 percent of the revenue raised by sales taxes. In addition, the number of individuals and estates that bear these costs has fallen markedly as the estate-tax exemption level has risen since 2001.

Exaggerated estimates of estate tax compliance costs often incorrectly include the cost of activities that would be necessary even without an estate tax — hiring estate executors and trustees, drafting provisions and documents for the disposition of property, and allocating bequests among family members, for example. These activities account for about half of all costs sometimes associated with estate planning.

9. The United States Taxes Estates More Lightly Than Comparable Countries
Twenty-six of the 34 members of the Organisation for Economic Co-Operation and Development levied some form of estate tax, inheritance tax, or other wealth or wealth transfer tax in 2014 (the latest year for which full data are available). U.S. estate and gift tax revenues at all levels of government were well below average among these 26 countries as a share of the economy.

10. The Estate Tax Is the Most Progressive Part of the U.S. Tax Code
Because it affects only those who are most able to pay, the estate tax is the most progressive component of a tax code that overall is only modestly progressive, particularly when regressive state and local taxes are taken into account.[25] It is also the nation’s most effective tax policy tool to mitigate the negative effects of inheritances, which account for about 40 percent of household wealth and are extremely concentrated at the top. Because they are correlated with the parent’s economic outcomes and provide an alternative to earned income, inheritances likely limit intergenerational mobility.

The money the estate tax raises helps to fund essential programs, from health care to education to national defense. If the tax were further weakened or repealed, other taxpayers would have to foot the bill for these programs, face cuts in the benefits and services provided, or bear the burden of a higher national debt. Like other Americans, the very wealthy benefit from public investments in areas such as defense, education, health care, scientific research, environmental protection, and infrastructure. And they rely even more than others on the government’s protection of individual property rights, since they have so much more to protect. Bill Gates, Sr., a prominent advocate of retaining a strong estate tax, has explained that wealthy individuals benefit from the government because it “protects their business activities, the traditions that enable them to rely on certain things happening, that’s what creates capital and enables net worth to increase.”

It is appropriate that people who have prospered the most in this society help to preserve it for future generations through tax revenues that derive from their estates. As President Theodore Roosevelt stated in 1906, “the man of great wealth owes a particular obligation to the State because he derives special advantages from the mere existence of government.”

TOPICS: FEDERAL TAX, TAX REFORM, PERSONAL TAXES, BUSINESS TAXES

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Temple wrote:: [b]Ten Facts You ....

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NEW law, numbnuts.

Read the article.

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How the Wealthy Are Trying to Anticipate Biden’s Tax Increases
Paul Sullivan, The New York Times
Sun, May 2, 2021, 9:20 AM·8 min read

President Joe Biden this week proposed significant increases in taxes on the wealthy. And while the details are likely to change as the legislation makes its way through Congress, wealthy Americans were scrambling to lock in tax savings before they even knew what the proposal was.

The proposed higher taxes on income and capital gains — which would nearly double for the highest earners — were expected. But the American Families Plan, as the White House calls it, was silent on an anticipated increase in estate and gift taxes. Instead, it included a provision requiring heirs to pay capital gains taxes on assets above a certain amount that they inherit.

Advisers to the wealthy say they have been flooded with requests to make plans for what any eventual tax changes will be. And assuming that the president’s proposal will not go into law as is, they have been asking their advisers for help in understanding what could be added from the “For the 99.5%” plan floated by Sens. Bernie Sanders and Elizabeth Warren and others.

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“I don’t know where we’re going with any of these taxes,” said Bill Schwartz, managing director of Wealthspire Advisors, which advises clients with $5 million to $20 million in assets. “But I do know it’s really difficult right now to justify what people call a loophole or what I call using the tax code to your advantage. In fact, it’s really hard to justify any of these techniques for the affluent right now, not that I think they’re right or wrong.”

Since Biden won the election in the fall, I have written a couple of columns on the expected tax increases. Here’s what we know now, with planning thoughts for each one.

Income tax: The top marginal rate would go up to 39.6%, from 37%. That is where it was during President Barack Obama’s administration.

While marginal rates are calculated on income bands, Biden’s proposal would raise taxes not just on people currently subject to the highest rate of 37%. That rate currently starts when someone earns more than $518,000 or a couple earns more than $622,000.

The 39.6% rate would start with people earning $400,000 a year, which was where it was during part of the Obama administration. It would affect many people on the high-earning but high-cost coasts who might not consider themselves wealthy.

To avoid the higher tax, people who have the ability to determine when they collect income could accelerate it now when the rate is lower.

This could include collecting a bonus or negotiating a future payment early, said Michael Nathanson, chief executive of the Colony Group. It could also mean converting an individual retirement account to a Roth IRA in order to pay the lower taxes now.

Capital gains: The proposed capital gains increase doubles the rate that high-earners would pay when they sold their investments. But it would also affect people who have one-time, big-dollar events — like selling a family business.

The current rate is 20%, and Biden has proposed increasing it to 39.6%. Added on top of both rates is a 3.8% surcharge to help pay for the Affordable Care Act.

Wealth planners raised a couple of issues with this proposal. First is how the increase would influence people’s behavior. Planners critical of the increase say the lower capital gains tax was meant to give an incentive to save and not spend.

“The capital gains increase is not just for the consistently high, $1 million-a-year earner,” said Mallon FitzPatrick, head of financial planning at Robertson Stephens Wealth Management. “It’s impacting people who are depending on this money for retirement as well, from selling a business or from selling a home.”

The proposal also highlights the need to run the math before making any snap decisions. The decision to sell now or hold on to assets that are going to be taxed more heavily depends on when someone needs the money, said Pam Lucina, chief fiduciary officer and head of the trust and advisory practice at Northern Trust Wealth Management.

“If you need those assets to fund short-term goals — less than 10 years — you’re slightly better off selling than holding,” she said. “But it’s different if you have a concentrated position of stock. What do you assume it is going to grow at? That could be a shorter time horizon.”

Lucina said that comparing the projected growth with the possible increase in the capital gains tax would help people make a decision. “Oftentimes, they end up not selling,” she said.

Estate and gift tax: A change that was widely expected but not included in Biden’s proposal was lowering the level of estates and gifts that would be exempt from taxes. Biden was also expected to increase the tax rate. The current exemption level is as generous as it has ever been, at $11.7 million per person, indexed to inflation, while the 40% tax rate for any amount above that is historically low.

While the president’s proposal left the estate tax untouched, Lucina said she had still been getting calls from wealthy clients this week. She said she was telling them to think about their options, but not try to predict, when it comes to estate and gift taxes.

Biden did, however, propose eliminating a provision that values the assets in someone’s estate at whatever they were on the date of death. That provision, known as a step-up in basis, wiped out years of capital gains that were never declared, depriving the Treasury of significant tax revenue.

“It’ll raise a fair amount of money,” said David Pratt, chairman of the private client services department at the law firm Proskauer. “But it’s a double whammy. You still have the estate tax.”

The wealthiest will still have to worry about the limit on the estate tax exemption and the tax rate above that. But they will also have to look at whether they can pass along assets whose value is close to their purchase price, and that will probably be difficult. Another option is to put them in vehicles like trusts or retirement accounts, where the unrealized capital gains are less of an issue.

The potential loss of the step-up in basis is likely to be a bigger deal for middle-class Americans. Their estates would be exempt from the estate tax, but their heirs would have to calculate the appreciated gains on the assets they inherited.

Biden has cleared up some issues for the middle class in his proposal. He has recommended an exemption of $1 million on the capital gains of assets transferred to heirs. He has also left in place the $250,000 exemption on taxable gains in the value of a person’s primary residence. (These exemptions would double for a couple.)

But in many cases, this would affect people who would not have had to think about paying any tax at death, whether the estate tax exemption remained the current $11.7 million or dropped to $3.5 million, which had been expected to happen.

“The changes to the step-up in basis — that’s the curveball,” said Paul Saganey, the founder and president of Integrated Partners, a financial advisory firm. “It’s really going to surprise people. People don’t know what it is or what it means, so how can they quantify the impact of it?”

Also missing was any mention of reinstating the full deduction for state and local taxes, known as SALT. The cap on these deductions in the 2017 tax law hurt people living in the Northeast and West Coast states, where the property and state taxes are higher.

Biden has proposed limiting a break on real estate transactions. He would cap at $500,000 the value of 1031(b) exchanges, which have essentially allowed real estate investors to roll gains from the sale of buildings into new buildings without ever paying capital gains taxes on them. Coupled with the step-up in basis at death, which wiped out all the gains in value of the buildings, this was a large tax break for families whose wealth rested on real estate investment and ownership.

What is less known is what, if anything, may be adopted from the “For the 99.5%” plan. The plan would close some popular tax-reduction strategies, many of which were targeted during the Obama administration.

Three of the proposals would be relatively easy to enact. One would end short-term trusts that allow people to pass tax-free to their heirs expected appreciation — say from the sale of a private business. Another would limit tax-free gifts that can be given each year to trusts to fund things like life insurance to pay estate taxes. A third would curtail special tax treatment that family partnerships receive, even when they own liquid securities and not an operating business.

“They already have the regulations written for these,” Lucina said. “I don’t want to scare anyone that these will be enacted. But some of these could be enacted quickly and looked at as loophole closers.”

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The Wise And Powerful wrote:

Temple wrote:: [b]Ten Facts You ....

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NEW law, numbnuts.

Read the article.

There is no federal inheritance tax and only six states collect an inheritance tax in 2020 and 2021, so it only affects you if the decedent (deceased person) lived or owned property in Iowa, Kentucky, Maryland, Nebraska, New Jersey, or Pennsylvania.

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Temple wrote:

The Wise And Powerful wrote:

Temple wrote:: Ten Facts You ....

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snip

///

NEW law, numbnuts.

Read the article.

There is no federal inheritance tax and only six states collect an inheritance tax in 2020 and 2021, so it only affects you if the decedent (deceased person) lived or owned property in Iowa, Kentucky, Maryland, Nebraska, New Jersey, or Pennsylvania.

Estate Planning After the 2020 Election: Biden vs. Trump on the Estate Tax

With any presidential election, there is always the possibility of major changes in the law, especially tax law. Both Joe Biden and Donald Trump have discussed the estate tax in their tax plans, which naturally caught our attention as it is pertinent to our clients.

With the current pandemic, recent polls have listed taxes as a primary concern of only 1% of voters at the moment, but that does not make the candidates’ tax plans unimportant. Joe Biden and Donald Trump have very different ideas when it comes to the estate tax. Boca Raton estate planning attorneys discuss the nuances of these estate plans below.

Joe Biden's Tax Plan

Vice President Joe Biden’s plan is to pass legislation as soon as possible to reduce the current exemption of $11.58 million to $5 million per person indexed for inflation. At the current exemption, less than 0.1% of people are subject to it. Joe Biden’s plan of reducing the exemption to its previous amount, while including more people, still excludes the vast majority.

In 2016, when the exemption was $5.45 million, 0.2% of Americans paid estate taxes. While this affects very few people, another aspect of Biden's plan does affect everyone: the elimination of the basis step-up. This feature in the tax code allows people to bequeath or devise property to another, and upon his or her death, the recipient receives it at the fair market value at the time of death instead of the purchase price. This eliminates any tax on the appreciation, which can save beneficiaries a substantial amount of money. Further, finding out the current fair market value of property is usually much simpler than trying to find out what the decedent paid for it originally.

Donald Trump's Tax Plan

President Donald Trump’s plan is less defined as far as numbers are concerned, but the strategy is clear: Make the estate tax apply to even fewer people. When running for his first term, he frequently said he would like to eliminate the “death tax,” just as George W. Bush said he would. September 11th and the War on Terror sidelined this goal for Bush and it became unlikely to pass such legislation through Congress. Donald Trump is also unlikely to be able to pass legislation eliminating the estate tax, so he has stated that he will push to increase the exemption, to what number has not been said.

The aim is to reduce the 0.1% of people subject to the estate tax to as close to zero as politically possible. Donald Trump would not change the tax code in regard to the basis step-up, allowing for gains in appreciated property to go untaxed to devisees and preventing the need to find the purchase price of every asset of a decedent.

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Has the Estate Tax Been Repealed and What About the Gift Tax?

There has been a lot of talk about the myriad of tax law changes with the passage of the “Tax Cuts and Jobs Act” (TCJA), but let’s not forget about the estate tax. One of the biggest assets for an entrepreneur is their business and the Estate and Gift tax can have a big impact on your heirs.

Losing the proverbial “family farm” was a reality for many when they owed tax on 45% or more on the fair market value of a business within 9 months of the death of a loved one. The family would oftentimes have to sell the business at a major discount just to come up with the money for the tax bill.

Although the House of Representatives’ version of the recent tax bill had included language to repeal the federal estate tax in its entirety by the year 2025, the final version that was signed by President Trump did not repeal the estate tax.

The New Law. Instead, the TCJA doubled the estate tax exemption from $5.49 Million to $11.2 Million (taking into account inflation). Of course, the average American’s net worth is far less than this and maybe that’s why no one is talking about it, but I thought it was at least worth a short article to set forth the facts.

This means that even less Americans will pay federal estate tax. Thus, if an individual is worth less than $11.2 Million, or a married couple less than $22.4 Million, they will pay no estate tax at all. If you think about it in those terms, a VERY small fraction of America (less than 1%) is going to ever pay federal estate tax.

Will it last? For all of you mega wealthy out there, this “win” is short-lived as this increased exemption will only last until the year 2025. If Congress does not make any other changes in this regard by 2025, the estate exemption will revert back to what it was in 2017 which is $5.49M exemption for individuals (as adjusted by inflation) and $10.9M for married couples (through portability).

What’s the rate on all of this wealth over the exemption amount? A hefty 40%.

But what about State Estate tax?

That’s right…no play on words. Keep in mind that a few states assess estate tax at the state level (Washington, Oregon, Hawaii, Minnesota, Illinois, New York, Vermont, Massachusetts, Maryland, Rhode Island, and Connecticut). Of these states, a few of them set their estate exemption regardless of federal estate tax exemption. Thus, in the states that don’t ‘conform’ to federal law, the new TCJA will have no bearing or effect at all at the state level.

On the other hand, a few of these states use the SAME estate tax exemption figure as the federal, in other words ‘conform’. For example, Hawaii has a state estate tax exemption that mirrors the federal estate tax exemption. So for a Hawaii resident, this new change in federal law ALSO has a huge positive impact at the state level.

Oh…and by the way, for the sake of clarity, estate tax (at both the state and federal level) is a tax on the estate, whereas a few states (Nebraska, Iowa, Kentucky, Pennsylvania) assess a tax known as an “inheritance” tax which a tax paid by the recipient, but that’s a topic for another day.

Now for the Gift Tax: The ‘sister’ to the Estate tax

It’s important to remember that this new tax law only pertains to federal estate tax. It’s important to note that the lifetime gift tax exemption has also been doubled. As you may know, the gift tax was enacted to prevent taxpayers from avoiding estate tax by simply gifting their estate during their lifetime.

So it would make sense that as the estate tax exemption has been doubled, so has the gift tax exemption. This means you can give your assets away during your lifetime and so long the cumulative value of the gift(s) does not exceed $11.2M, generally, no gift tax would be imposed. I’ll give you my address if you are stuffing an envelope with a big check.

Finally, if the Gift Tax is the sister to Estate Tax, then tax law regarding Stepped Up Basis is its 1st cousin. Thus, it’s also very important to you and me and should be noted that the new tax law retains the stepped up basis in property received from an estate.

This is actually a law that really does affect all the ‘commoner’, or middle-income American. If you didn’t know the concept already, when you receive property through an inheritance (someone’s Will, Trust, etc.), the basis in that property “steps up”, meaning it increases in value from whatever the actual basis was in the property to the Fair Market Value (FMV) of the property at the time of death. For you as the recipient of the property, this is a HUGE tax benefit!

For example, if Aunt Bertha bought an investment property in 1960 for $25,000 and it’s now worth $150,000, that’s a huge gain and tax liability if the property were sold by Aunt Bertha before her death. Moreover, if Aunt gifts you the property, or puts your name on the title, you get a carried over basis and will pay the same tax.

Result. But if YOU inherit Aunt Bertha’s home upon her death, and you want to sell it a couple years later for $200,000, your ‘basis’ would $150,000 (the FMV upon her death), instead of $25,000. Thus, you only pay tax on $50,000 and you get a big tax benefit selling it after you inherit the property.

Ultimately, for most middle-class Americans, it’s important to remember that you alway’s liked your 1st cousin and didn’t mind seeing them once and a while at a family reunion. So just because you aren’t part of the 1% wealthiest people in America and could care less about the estate tax, YOU DO care about the concept of “Stepped Up Basis”. Maybe you should have sent a Christmas Card to your cousin this last December after all.

https://markjkohler.com/has-the-estate-tax-been-repealed-and-what-about-the-gift-tax/[/b]

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FEB 22, 2020 AT 11:29 AM

WASHINGTON —
President Donald Trump celebrated the elimination of a tax that still exists and went deep and wide in distorting what he's done in office.

The estate tax;

Fact check: Trump has not killed the ‘death tax.

TRUMP:
“We got rid of it. No more death tax, no more inheritance tax.” — Colorado rally Thursday.

THE FACTS:
False. The “death tax" is still alive.

He's referring to the estate tax, also known as the inheritance tax.
He didn't get “rid of it.”

The 2017 tax overhaul doubled the threshold at which the estate tax gets levied. A couple worth less than $22.4 million would avoid the tax. But the increase of the threshold isn’t permanent. It's set to expire in 2026.

TRUMP
On the effects of the estate tax on people inheriting family farms: “You know what? They go out and they would borrow a lot of money and they would lose the farms. The number is staggering.” —

THE FACTS:
He’s inflating the peril to family farms from the estate tax, which is aimed at the hugely wealthy. After his 2017 tax cuts, the Agriculture Department published estimates that 38,106 farm estates would be created in 2018. Of those, only 230 would have to file an estate tax return and only 133 would have any estate tax liability.

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