Responsible Estate Tax Act

The Responsible Estate Tax Act (S. 3533) would reinstate and increase federal taxes on large inheritances to address wealth inequality. Under this proposal, the first $3.5 million of an estate would be exempt from taxation, while values above that amount would be subject to a progressive tax rate starting at 45% and reaching 55% for estates over $50 million. Additionally, the bill would impose a 10% surtax on estates valued at more than $500 million.

For most citizens, this bill would have no direct financial impact, as it is designed to exempt 99.7% of Americans from paying any estate tax. However, it includes specific provisions to help farmers and landowners by increasing tax breaks for farmland and conservation easements. The bill also aims to close various tax loopholes used by the wealthiest individuals to minimize their estate tax obligations.