UFE Endorses Sen. Warren and Rep. Cleaver’s Estate Tax Reform and Housing Bill

United for a Fair Economy (UFE) and our Responsible Wealth (RW) project are proud to join other national advocates in supporting the American Housing and Economic Mobility Act (AHEM), introduced by Senator Elizabeth Warren and Representative Emanuel Cleaver, is aimed at strengthening the federal estate tax. It is poised to raise approximately $500 billion and invest that money in creating affordable housing.


Strengthening the Estate Tax - and more

Warren and Cleaver's AHEM bill proposes returning the estate tax thresholds to their levels at the end of the Bush Administration ($3.5 million individual exemption; $7 million per couple) and introduces a new progressive rate structure for estates. Additionally, an extra 10% surtax is applied to estates worth over $1 billion. The reform also aims to close loopholes and limit tax avoidance strategies that wealthy families often use, such as Grantor Retained Annuity Trusts (GRATs) and generation-skipping trusts (GSTs).

 

Critical New Resources for Housing Production and Rental Assistance

The revenue generated from the estate tax reform will be invested to create around 3 million new housing units at a time when the price for lower-cost housing has risen sharply nationwide. To that end, the bill allocates $70 billion to the public housing capital fund and $445 billion to the federal Housing Trust Fund. It also supports down payment assistance for first-time homebuyers, incentivizes localities to reduce unnecessary land use restrictions, and strengthens fair housing protections. Moody’s Analytics estimates that this investment will reduce rents for lower-income and middle-class families by 10% and create 250,000 jobs in the initial years, with 400,000 jobs created annually over the next decade.

Image from Zandi, Mark. An Assessment of the American Housing and Economic Mobility Act of 2024. Moody’s Analytics, May 2024, p. 4.

Raising Our Voices for Fair Taxation and a Robust Commons

UFE has a long history of advocating for a fairer tax system, particularly focusing on the estate tax. Beginning in 2000, UFE collaborated with notable figures like Bill Gates, Sr. to raise awareness and support for estate tax reforms. Despite the estate tax being progressively weakened over the past two decades, a Responsible Wealth statement signed by Bill Gates, Sr., Warren Buffett, Jimmy Carter, Richard Rockefeller and others in 2012 resulted in the estate tax rate being increased to 40%. As an organization, UFE has consistently worked to ensure that wealth is more equitably distributed and that the tax system supports public investments that benefit all Americans. 

The Warren-Cleaver bill represents a significant step towards creating a more equitable economy by ensuring that the wealthiest Americans contribute their fair share. The funds raised will address critical housing needs, providing stable and affordable homes for millions of families. UFE is committed to supporting this legislation and advocating for its passage to create a fairer, more just economy.

 

Take Action Today!

Are you in the top 5% of US income earners? Top 5% of US wealth holders? Consider becoming a member of Responsible Wealth, to add your voice to those who benefit from economic policies tilted in their favor, who believe that growing inequality is not in their best interest and use their position to speak out in favor of progressive taxation, living wages, corporate accountability, and more. 

 

 

 

 


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