2017: Schweikert Voted For The Final Version Of Trump's Tax Reform Plan, Which Substantially Cut Taxes For Rich Americans And Corporations, And Doubled The Exemption For The Estate Tax. In December 2017, Schweikert voted for the Tax Cut and Jobs Act, also known as Trump's tax reform bill. According to Congressional Quarterly, "This Conference Summary deals with the conference report on HR 1, Tax Cuts and Jobs Act, which the House will consider Tuesday. The agreement significantly cuts corporate and individual taxes and seeks to simply the tax code, although most individual tax provisions would expire after 2025. It reduces the corporate tax from 35% to 21% and reduces taxation of so-called 'pass-through' businesses where profits are taxed at the individual rate. For corporate taxes it also establishes a 'territorial' tax system that exempts most overseas income from U.S. taxation. Most individual tax rate rates would be reduced, including by dropping the top rate from 39.6% to 37%, and it eliminates personal exemptions but nearly doubles the standard deduction so fewer taxpayers will itemize deductions." The vote was on passage. The House passed the bill by a vote of 227 to 203. The Senate later passed a slightly modified version of the bill, which the House later agreed to. President Trump later signed an amended version of the bill into law. [House Vote 692, 12/19/17; Congressional Quarterly, 12/18/17; Congressional Actions, H.R. 1]
Legislation Doubles The Estate Tax Exemption. According to the Washington Post, "You can pass your heirs up to $22 million tax-free: In the end, the estate tax (often called the 'death tax' by opponents) would remain part of the U.S. tax code, but far fewer families will pay it. Under current law, Americans can pass on up to $5.5 million tax-free (that threshold is $11 million for married couples). The House wanted to do away with the estate tax entirely, but some senators felt that was too much of a giveaway to the mega-rich. The final compromise was to double the threshold, so now the first $11 million that people pass on to their heirs in property, stocks and other assets won't be taxed (and yes, that means $22 million for married couples)." [Washington Post, 12/15/17]
Only 2 Out Of 1,000 Estates Will Face A Tax Under Current Law. According to the Center on Budget and Policy Priorities, "Only the heirs of the wealthiest 2 out of every 1,000 estates will face any estate tax. [...] Repeal would provide the top 0.2 percent of estates with tax-cut windfalls averaging more than $3 million apiece. About 330 estates worth more than $50 million would get tax cuts averaging more than $20 million apiece." [Center on Budget Policy Priorities, Accessed 11/22/17]
2001 New York Times Article Noted That Not A Single Example Of A Farm Was Lost Due To The Estate Tax. According to the Center on Budget and Policy Priorities, "As the New York Times reported in 2001, when the estate tax applied to far more estates than it does today: 'Even one of the leading advocates for repeal of estate taxes, the American Farm Bureau Federation, said it could not cite a single example of a farm lost because of estate taxes.'" [Center on Budget Policy Priorities, Accessed 11/22/17]
2017: Schweikert Voted For The House GOP's 2017 Tax Reform Plan Which Significantly Cut Taxes For The Rich And Corporations And Repealed The Estate Tax. In November 2017, Schweikert voted for reconciliation legislation which significantly altered the federal tax code. According to Congressional Quarterly, "The bill substantially restructures the U.S. tax code to simplify the code and reduce taxes on individuals, corporations and small businesses. For individuals, it consolidates the current seven tax brackets down to four and eliminates or restricts many tax credits and deductions, including by eliminating the deduction for state and local income taxes and limiting the deduction for property taxes to $10,000 and the interest deduction for a home mortgage to the first $500,000 worth of a loan. [...] On the business side, it reduces the corporate tax from 35% to 20% and establishes a 'territorial' tax system that would exempt most income derived overseas from U.S. corporate taxation. It allows businesses to immediately expense 100% of the cost of assets acquired and placed into service, and for small businesses it raises the Section 179 expensing limit to $5 million for five years. It also establishes a 25% rate for a portion of pass-through business income that would otherwise have to be paid at the ordinary individual tax level, and for small businesses where an individual would receive less than $150,000 in pass-through income it taxes the first $75,000 of that income at a 9% rate." The vote was on passage. The House passed the bill by a vote of 227 to 205. President Trump later signed an amended version of the bill into law. [House Vote 637, 11/16/17; Congressional Quarterly, 11/15/17; Congressional Actions, H.R. 1]
Bill Would Phase In A Complete Estate Tax Repeal. According to Congressional Quarterly, "It also repeals the estate tax starting in 2025, and until that time doubles from $5.6 million to $11.2 million (adjusted annually for inflation) the amount per spouse that is exempted from the estate tax. The gift tax rate would be reduced to 35%." [Congressional Quarterly, 11/15/17]
The Current Federal Estate Tax Has A $5.5 Million Per Person Exemption. According to the Center on Budget and Policy Priorities, "The federal estate tax is due only on the portion of an estate's value that exceeds roughly $5.5 million per person ($11 million per couple). As a result, only the wealthiest 0.2 percent of estates pay the tax, and typically at fairly moderate rates. Repeal would give these estates windfall tax cuts averaging more than $3 million apiece, benefitting wealthy heirs. But it would do virtually nothing for small farms and businesses, despite the claims of repeal supporters. Repeal would also cost $239 billion over ten years and worsen wealth inequality." [Center on Budget Policy Priorities, Accessed 11/22/17]
Only 2 Out Of 1,000 Estates Will Face A Tax Under Current Law. According to the Center on Budget and Policy Priorities, "Only the heirs of the wealthiest 2 out of every 1,000 estates will face any estate tax. [...] Repeal would provide the top 0.2 percent of estates with tax-cut windfalls averaging more than $3 million apiece. About 330 estates worth more than $50 million would get tax cuts averaging more than $20 million apiece." [Center on Budget Policy Priorities, Accessed 11/22/17]
A 2001 New York Times Article Noted That Not A Single Example Of A Farm Was Lost Due To The Estate Tax. According to the Center on Budget and Policy Priorities, "As the New York Times reported in 2001, when the estate tax applied to far more estates than it does today: 'Even one of the leading advocates for repeal of estate taxes, the American Farm Bureau Federation, said it could not cite a single example of a farm lost because of estate taxes.'" [Center on Budget Policy Priorities, Accessed 11/22/17]
Trump's Family Could Gain $1.1 Billion From An Estate Tax Repeal. According to the New York Times, "Though it would not be reflected on his income tax return, Mr. Trump's proposal to eliminate the estate tax would generate the largest tax savings. If his assets --- reportedly valued at $2.86 billion --- were transferred after his death under today's rules, his estate would be taxed at about 40 percent. Repealing the federal estate tax could save his family about $1.1 billion, though it could still be subject to New York estate taxes." [New York Times, 9/28/17]
2015: Schweikert Voted To Repeal The Estate Tax. In April 2015, Schweikert voted for repeal a bill that would repeal the federal estate tax. According to Congressional Quarterly, "The measure also would repeal the generation-skipping transfer tax and reduce the top marginal rate for the federal gift tax from 40 percent to 35 percent." The vote was on passage and the House passed the bill 240 to 179. The Senate took no substantive action on the bill. [House Vote 161, 4/16/15; Congressional Quarterly, 4/16/15; Roll Call, 4/16/15; Forbes, 4/16/15; White House, 4/13/15; Congressional Quarterly, 4/10/15; Congressional Quarterly, 3/25/15; Congressional Quarterly, Accessed 10/2/15; Congressional Actions, H.R. 1105]
Eliminating The Estate Tax Would Mean "Getting Rid Of All Income And Estate Taxes On The Wealthiest Estates In America" And Costing The Tax Payer "$270 Billion Over The Next Ten Years." According to the White House Blog, "Republicans in Congress have taken a very different approach, giving huge tax giveaways --- including eliminating the estate tax --- to the wealthy and well-connected at the expense of the middle class and those struggling to get into the middle class. What's would eliminating the estate tax mean? It'd mean getting rid of all income and estate taxes on the wealthiest estates in America -- valued at over $5.5 million in 2016. That would cost the American taxpayer $270 billion over the next ten years." [White House Blog, 4/13/15]
Estate Tax Currently Applies To 0.2 Percent Of Taxpayers At Death; Starts At Over $5.5 Million For Individuals. According to CQ Roll Call, "The estate tax currently applies to 0.2 percent of taxpayers at death, according to the Joint Committee on Taxation, because of a $5.4 million exemption for individuals ($10.9 million for couples)." [Roll Call, 4/16/15]
Advocates Say [The Estate Tax] Helps Reduce Concentrations Of Wealth And Produces Additional Revenue, According to Forbes, "Arguments in favor of the tax: it helps reduce concentrations of wealth and produces additional revenue. Repealing the tax would cost the Treasury $270 billion over 10 years. On average, 55% of the value of estates worth more than $100 million is made up of unrealized capital gains that have never faced income or capital gains tax, according to Americans For Tax Fairness' review of Federal Reserve Data." [Forbes, 4/16/15]
CBO And JCT Estimate That Repeal Would Increase Deficits By Nearly $270 Billion Over Ten Years. According to Congressional Quarterly, "The Congressional Budget Office (CBO) and Joint Committee on Taxation (JCT) estimate that the bill would reduce revenues, and therefore increase deficits, by $269 billion over 10 years. According to JCT, the bill contains no intergovernmental or private sector mandates as defined in the Unfunded Mandates Reform Act." [Congressional Quarterly, 4/10/15]
Sen. Thune (R-SD) Introduced A Companion Senate Bill, S. 860. The bill was called the Death Tax Repeal Act of 2015. According to Congressional Quarterly, "Amends the Internal Revenue Code to: (1) repeal the estate and generation-skipping transfer taxes, and (2) make permanent the maximum 35% gift tax rate and the lifetime gift tax exemption. Provides for an inflation adjustment to such exemption amount." [Congressional Quarterly, 3/25/15]
While Not Enough Votes To Get Past Senate, Advocates Say A Repeal Is Possible In 2017. According to Forbes, "The House of Representatives voted to kill the federal estate tax today 240-179, with 7 Democrats joining. That doesn't mean that the estate tax is going away anytime soon, but anti-death tax advocates say it sets the stage for possible repeal in 2017. Significantly, the bill keeps in place a provision called 'stepped up basis' that allows capital gains to escape taxation if passed to heirs. For now, there aren't enough votes in the Senate, and President Barack Obama would veto estate tax repeal anyway. 'Representatives are interested in showing that this is a priority and continuing the drumbeat,' says Palmer Schoening, head of the Family Business Coalition which lobbied on behalf of 82 business groups in favor of the repeal bill, H.R. 1105, introduced by Kevin Brady (R-TX). Sen. John Thune (R-SD) sponsored a companion bill, S. 860." [Forbes, 4/16/15]
Koch Brothers Backed Organization, American For Prosperity, Urged Representatives To Vote Yes And Included The Vote In Their Annual Scorecard. [Americans for Prosperity, 114th Congress Scorecard]
2015: Schweikert Effectively Voted Against Disqualifying Individuals Convicted Of attempting To Evade The Estate Tax From Having Their Liability Repealed. In April 2015, Schweikert effectively voted against protecting convicted estate tax evaders from having their estate tax repeal under the proposed bill. According to Congressional Quarterly, the amendment would have "disqualif[ied] from the bill's provisions individuals convicted of attempting to evade the gift tax or before the bill's enactment engaged in a transaction with intent to evade the estate tax." The underling bill would have repealed the Estate Tax and reduced the top marginal rate for the gift tax to 35 percent, from 40. The vote was on a motion to recommit. The House rejected the motion by a vote of 186 to 232. [House Vote 160, 4/16/15; Congressional Quarterly, 4/16/15; Congressional Quarterly, 4/16/15; Congressional Actions, H.R. 1105]
2015: Schweikert Voted To Eliminate The Estate Tax As Part Of The FY 2016 Republican Study Committee Budget Resolution. In March 2015, Schweikert voted for eliminating the Estate Tax. According to the Republican Study Committee, the budget would have "Repeal[ed] the death tax." The underlying budget resolution would have, according to Congressional Quarterly, "provide[d] for $2.804 trillion in new budget authority in fiscal 2016, not including off-budget accounts. The substitute would call for reducing spending by $7.1 trillion over 10 years compared to the Congressional Budget Office baseline." The vote was on the substitute amendment to a Budget Resolution. The House rejected the amendment by a vote of 132 to 294. [House Vote 138, 3/25/15; Republican Study Committee, FY 2016 Budget; Congressional Quarterly, 3/25/15; Congress.gov, H. Amdt. 83; Congressional Actions, H. Con. Res. 27]
2014: Schweikert Voted To Eliminate The Federal Estate Tax. In April 2014, Schweikert voted for the Republican Study Committee's proposed budget resolution for fiscal years 2015 to 2024. According to the Republican Study Committee, "This budget calls on the Ways and Means Committee to issue a tax reform draft that conforms to the following parameters: [...] Repeals the death tax or inheritance tax." The House considered the RSC budget as a substitute amendment to House Republicans' FY 2015 budget resolution; the amendment was rejected by a vote of 133 to 291. [House Vote 175, 4/10/14; Republican Study Committee, 4/7/14; Congressional Actions, H. Amdt. 615; Congressional Actions, H. Con. Res. 96]
2013: Schweikert Voted To Eliminate The Estate And Gift Tax. In March 2013, Schweikert effectively voted to support eliminating the estate and gift tax, as part of The Republican Study Committee's proposed budget resolution covering fiscal years 2013 to 2023. According to the Republican Study Committee's budget "This budget calls for the elimination of the death tax, which imposes heavy compliance costs and threatens the survival of small businesses and family farms." The vote was on an amendment to the House budget resolution replacing the entire budget with the RSC's proposed budget; the amendment failed by a vote of 104 to 132 with 171 Democrats voting present. According to Congressional Quarterly, "Repeating a strategy from last year, 171 Democrats voted "present" to push Republicans to vote against the RSC plan to make sure it did not have enough support to replace the Ryan plan." [House Vote 86, 3/21/13; Republican Study Committee, 3/18/13; Congressional Quarterly, 3/25/13; Congressional Actions, H. Amdt. 35; Congressional Actions, H. Con. Res. 25]