Trump tried a new attack on Hillary Clinton on Friday, one that I don’t think I’ve seen before. He attacked her stance on estate taxes saying on Twitter that “Hillary Clinton just lost every Republican she ever had, including Never Trump, all farmers and & sm. biz, by saying she’ll tax estates at 65%.”
It is true that Hillary Clinton has proposed a 65% estate tax rate. What Donald Trump didn’t tell you is that it will only affect billionaires like him, as the top 65% rate only applies to married couples worth more than $1 billion. That’s correct, Donald Trump just said that Clinton lost “farmers and sm. biz” by wanting to tax billionaires more.
According to the Wall Street Journal, only 223 estates worth more than $50 million filed estate taxes is 2014. It really is mostly a moot point as families that wealthy will generally create trusts and foundations to avoid the worst of the estate taxes.
That being said, Clinton’s full estate tax proposal, if passed, is estimated to generate $1.5 trillion in taxes over 10 years. Trump’s tax plan, including repeal of the estate tax, leaves a $4.5 trillion shortfall of revenue over the same period.