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Does the US have inheritance taxes as claimed by Rahul Gandhi’s advisor Sam Pitroda? Find out

Amid the political discourse in India about wealth redistribution which is part of the Congress’ election manifesto for the ongoing Lok Sabha polls, a statement by Indian Overseas Congress president Sam Pitroda has sparked a debate on the inheritance tax system in the United States. Pitroda advocated an inheritance tax similar to that of the US, claiming that the US government levies a hefty 55% tax on a person’s wealth upon death, leaving only 45% for his heirs.

However, closer examination reveals a more nuanced reality. Contrary to Pitroda’s claims, the United States does not have a uniform federal estate tax. Instead, inheritance tax policies vary considerably from country to country. According to the latest available data, only six of the fifty states in the US impose inheritance taxes. These states include Iowa, Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania.

Moreover, the rates imposed by these states differ significantly from the 55% figure cited by Pitroda. For example, Iowa levies an inheritance tax of 6%, while Kentucky and New Jersey have rates of 16%. Maryland and Pennsylvania impose taxes of 10% and 15% respectively. Nebraska is also at 15%. It is important to note that these rates are subject to exemptions and thresholds, meaning that only a fraction of taxpayers will actually face the estate tax.

Further, there have been recent legislative developments in some states regarding estate taxes. For example, Iowa has taken steps to phase out the estate tax to eliminate it completely by the next one year. Such changes indicate a dynamic estate tax policy landscape in the United States.

Furthermore, it is crucial to distinguish between inheritance tax and inheritance tax, as both terms are often used interchangeably but involve different mechanisms. While inheritance tax is imposed on assets received by individual beneficiaries, inheritance tax is levied on the deceased’s estate before distribution. From nowonly thirteen states impose an estate tax, with rates as high as 40%.

In light of this complexity, Pitroda’s claim about the uniformity and scope of estate taxes in the US seems inaccurate. The reality is that Inheritance tax policies vary widely from country to country, with rates and exemptions subject to legislative changes and state-specific regulations.

It is important to note that Rahul Gandhi was talking about the distribution of wealth among the population and not necessarily about inheritance tax or the future policy as claimed by Pitroda in his interview with ANI. Rahul Gandhi in his speech that when Congress comes to power, an economic survey will be conducted. He also said: “My aim is that I will distribute the amount of money that Narendra Modi gives to Adani among the poor. I’m counting. If he gives one rupee to Adani, I will give one rupee to the poor. I will give as much money to the poor as you give to them (rich) – whether they are farmers, laborers, kirana shop owners or unemployed youth. And I’ll show you that real politics doesn’t come from helping billionaires; real politics comes when you help farmers, workers, small traders/businessmen and unemployed youth. I’ll show you.”

The Congress has come up with a very despicable and evil plan that seems solely aimed at destroying the country inside out.

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