# The For the 99.5 Percent Act: Plain Language Summary

This bill is designed to change how taxes work for wealthy Americans and large corporations. The name "For the 99.5 Percent" refers to the idea that the tax changes would primarily affect the wealthiest half percent of Americans while benefiting everyone else. The bill would likely increase tax rates or close tax loopholes for high earners and big businesses, with the goal of raising government revenue from those at the top of the income ladder.

The practical effect would mean that people earning very high incomes or running large corporations would pay more in taxes, while middle and working-class Americans would either pay less or see no change to their tax bills. The money collected from these higher taxes could potentially be used to fund government programs, reduce the national deficit, or provide tax relief to lower and middle-income households. This is part of a broader debate about whether the current tax system is fair—supporters argue that wealthy individuals and corporations should contribute more, while opponents worry that higher taxes on the wealthy could discourage business investment or economic growth.

The bill represents one side of an ongoing political disagreement about how to structure the tax code. Whether it would actually become law depends on whether it gains enough support in Congress and whether the President would sign it. Even if it passes, the specific details about which tax rates increase, which loopholes get closed, and how much money it would actually raise would be determined by the final version of the legislation.

For the 99.5 Percent Act

Sanders, Bernard

For the 99.5 Percent Act This bill imposes increased tax rates on decedent estates, gifts, and generation-skipping transfers. Estates with a value of over $1 billion are taxed at a 65% tax rate. The basic exclusion amount is reduced to $3.5 million. The bill increases (1) to $3 million the reduction in valuations of farmland for estate tax purposes and adjusts such increased amount for inflation, and (2) to $2 million the maximum estate tax exclusion for contributions of conservation easements. It also increases to 60% the applicable percentage for such exclusion. The bill requires (1) consistent basis reporting for property acquired by gift and transfers in trust, and (2) executors of estates and donors of gifts required to file a gift tax return to disclose to the Department of the Treasury, and to recipients of any interest in an estate or a gift, information identifying the value of each interest received. The bill sets forth estate valuation rules for certain transfers of nonbusiness assets and limits estate tax discounts for certain individuals with minority interests in a business acquired from a decedent. The bill expands rules for valuing assets in grantor retained annuity trusts to require that (1) the right to receive fixed amounts from an annuity last for a term of not less than 10 years and not more than the life expectancy of the annuitant plus 10 years, and that such fixed amounts not decrease during the first 10 years of the annuity term, and (2) the remainder interest have a value when transferred that is not less than the the greater of 25% of the fair market value of the trust property or $500,000. The bill also sets forth rules for the application of transfer taxes to a grantor trust (a trust in which the grantor retains control over the trust assets and has the right to receive income from the trust). <he> The bill eliminates the generation-skipping transfer tax exemption for transfers to certain persons. The bill modifies the tax exclusion for annual gifts to eliminate the present interest requirement for such exclusion and to impose a new, aggregate per donor limit equal to twice the annual exclusion amount in effect for the taxable year. It also provides for a gross up of taxable gifts in specified calendar years. The bill defines executor for purposes of the Internal Revenue Code.