Is US Estate Tax Working at 40%? Experts Find Average US Payment Equal to 2.2%
A Brookings Institution research paper published this week estimates that Americans will inherit USD $756 billion this year, paying on average only 2.2% tax on that income in spite of the base rate of estate tax being 40%.
The institution proposes substituting estate tax with a system by which heirs and beneficiaries pay income tax on any inheritances they receive that are over a certain lifetime threshold. The exact figure will be released at a later stage.