Tag: Hillary Clinton
Given the intrigue and extensive coverage that the current US election has had north of the border, it is only fitting that we dedicate today’s Hull & Hull Blog to reviewing the position taken by Clinton and Trump with respect to changes to estate tax.
A recent article in Forbes explains that current US laws exempt estates worth $5.45 million or less from paying estate tax. Estates valued higher pay 40% tax.
Hillary Clinton seeks to increase the taxes owing by the wealthiest from 45% to 65% based on the value of the estate, apparently the highest it’s been since 1981. Specifically, estates over $10 million would be taxed at 50%, those over $50 million at 55%, and those exceeding $500 million (for a single person) at 65% As well, Clinton also seeks to lower the exemption for estates valued at $5.45 million to $3.5 million.
Trump, on the other hand, seeks to eliminate the estate tax altogether.
According to the Wall Street Journal, the Republicans see the tax as “a patently unfair confiscation of wealth that punishes family-owned business”, while the Democrats view it as “a levelling tool necessary to combat concentration of wealth”.
In Ontario, while there is no inheritance tax, estate administration tax is charged on the total value of a deceased’s estate. Subject to certain exceptions, this includes the following assets: real estate; bank accounts; investments; vehicles and vessels; all property held in another person’s name; and, all other property, wherever situated, including goods, intangible property, business interests, and insurance proceeds.
As discussed in prior Hull & Hull LLP blogs, new provisions came into force on January 1, 2015, which requires payment of $5.00 for each $1,000, or part thereof, for the first $50,000 and $15 for each $1,000, or part thereof, of the value of the estate exceeding $50,000. There is no estate administration tax payable if the value of the estate is $1,000 or less.
Even as Canadians, we cannot help but get caught up in the media frenzy surrounding the U.S. Presidential State Primaries. In the last couple of months, the dominating story has been the campaign between Hillary Clinton and Barack Obama for the Democratic Party nomination.
Last week, Michael Geist, noted technology law professor, columnist, and blogger wrote an interesting article about how Barack Obama has courted the youth vote by embracing technology, especially social networks, like Facebook, MySpace, and YouTube. Obama’s approach appears to have worked as a social networking tool. The official Obama Facebook support page has over 500,000 friends versus Hillary’s 100,000 friends.
Aside from using technology to reach voters, Obama has also taken positions on issues that are important to young voters, such as net neutrality legislation and digital copyright, subjects most politicians, including Canada’s mainstream political parties fail to address.
From the sidelines, it will be interesting to see how the primaries work out and if more Facebook friends results in more delegates. I would encourage anyone interested in technology, privacy law, and social media to regularly read Mr. Geist’s blog.
Thanks for reading,