Democrats say they will Oppose Tax Reform on Estates

Just yesterday, Senate Democrats vowed that they would block any effort to rewrite the tax code that touches on the deduction for local and state taxes as well as the estate tax. The Democrats say that these will act as a mockery to the Trump administration that has promised to improve the life of middle-class Americans through tax relief. At the same time, it was reported that the Republicans were already arguing within themselves over the same issue even before they tried to convince the Democrats. As the tax overhaul now reaches as pivotal phase, the specific tax measure disagreements could jeopardize everything. It is expected that the Republicans and White House will table a reformed framework this month. Donald Trump has expressed the need for bipartisanship in this agenda. For instance, he opted to dine with members of the two parties on Tuesday. This is a clear indication that the Republicans are aware that they cannot pass the reforms without the help of their Democratic counterparts. With their rising significance to the equation, the Democrats have started making vigor demands. New York Senator Chuck Schumer who is also the Democratic leader said that the party is letting the administration know about their stand. At the moment, he expressed his concerns that the Democrats have no idea why the Republicans want to change the estate tax.

While making their case, the White House and Congressional Republicans argue that tax related to inheritance should be abolished. They further argue that it was hurting small businesses that were owned by families. Donald Trump called the inheritance tax as a tremendous burden during a speech in North Dakota. The president said that he would not allow any form of tax to interfere with the American Dream. However, the Democrats argue that the most hit by these taxes are the wealthy. At the moment, estates have an imposed tax of 40 percent. They also argue that the first $5.49 of inheritance being passed to heirs is not taxed. This makes it possible to transfer $11 million without taxes for couples. At the same time, only a few thousands of American estates are transferred annually. The New York Senator said that according to the Center on Budget and Policy Priorities report, the repeal that the Republicans propose would benefit close to 5,400 richest Americans at the moment. Mr. Chuck referred to the move as totally absurd, and they would not go along with it.