Advancing Equity with the 'For the 99.5% Act’

I am writing as a concerned constituent to express my support for the “For the 99.5% Act,” introduced by Senator Bernie Sanders and Representative Jimmy Gomez (S. 1178 / H.R. 2676). This legislation represents a crucial step towards addressing the growing wealth disparity in our country, and I urge you to lend it your support. Recent financial trends indicate an alarming shift in the accumulation of wealth, with a significant portion now derived from inheritances rather than entrepreneurship. This shift contributes to the consolidation of wealth and power in the hands of a few, undermining the foundations of our democratic and economic systems. The "For the 99.5% Act" seeks to address these issues by reinstating and reforming estate and generation-skipping taxes, among other measures. The bill introduces modifications to estate, gift, and generation-skipping transfer taxes, including changes to tax rates and exclusion amounts. It proposes a progressive tax structure with rates increasing for larger estates, thereby impacting only the wealthiest fraction of Americans. The basic exclusion amount for estate taxes is adjusted to $3.5 million, aligning it more closely with the original intent of the estate tax – to tax only the wealthiest estates. Furthermore, the Act includes provisions for modifying rules concerning the valuation of certain farm real property, aiming to assist families in maintaining their agricultural legacies without undue tax burdens. It also addresses land conservation easements, encouraging the preservation of our natural heritage. A significant aspect of the Act is the clarification regarding the step-up in basis for property held in certain grantor trusts, which has been a loophole in the past. By addressing these and other sophisticated tax-avoidance strategies, the Act seeks to ensure a fairer tax system. Moreover, the Act proposes the elimination of generation-skipping transfer tax exemptions for transfers to certain persons, directly addressing the issue of wealth accumulation across generations. It also simplifies the gift tax exclusion for annual gifts, making it more straightforward for taxpayers to understand and comply with. In summary, the “For the 99.5% Act” is a comprehensive legislative effort to ensure that our tax system is fair and equitable, particularly in taxing large inheritances. As your constituent, I strongly urge you to support this bill, which not only aims to reduce wealth inequality but also ensures the economic well-being and democratic integrity of our nation. Thank you for your attention to this important matter. I look forward to your response and support for S. 1178 / H.R. 2676.