Despite Trump and Republican assurances that a key part of the President’s tax plan – the repeal of the estate tax – will “help farmers, ranchers and small business owners,” Treasury Secretary Steven Mnuchin conceded that the plan will actually help one group of people much more than others.
Per the New York Times: “Obviously, the estate tax, I will concede, disproportionately helps rich people,” Mnuchin said.
Mnuchin’s comment comes in direct contrast to Trump’s, who is still attempting to frame the move as beneficial to the working class.
“To protect millions of small businesses and the American farmer, we are finally ending the crushing, the horrible, the unfair estate tax, or as it is often referred to, the death tax,” Trump said.
In actuality, the estate tax rate of 40 percent only takes effect after the first $5.49 million of an inheritance. In other words, a couple can leave their heirs approximately $11 million before the estate tax even comes into effect. Per The New York Times, “only a few thousand wealthy estates are subject to the tax a year.”
Despite Trump’s claims, unless the aforementioned “American farmer” is a multi-millionaire, this is hardly going to have the effect on “millions” of people that Trump claims. It will, however, directly benefit Trump’s own family, as well Steven Mnuchin’s.
In fact, not only will the repeal of the estate tax not benefit those whom Trump claims it will, but according to the Tax Policy Center, repealing the estate tax would actually reduce federal revenues by $239 billion over a decade.
While Trump parades through his campaign-style rallies as a populist, a man for the working class, this move is absolutely proof that he is only out to help himself, his family, and his rich friends.