Aug. 15 (UPI) -- Democratic presidential candidate Julian Castro introduced a plan Thursday to tax inheritance, raise the capital gains tax rate and provide a tax credit for families.
The plan proposes replacing the state tax and gift tax with a unified inheritance gift tax under which the first $2 million of person's inheritance would be tax-free and all subsequently inherited wealth would be subject to federal income and payroll taxes.
"A new inheritance tax will ensure wealthy heirs pay their fair share of taxes on inherited wealth, just like they would any other source of income and also prevent the concentration of economic and political power in the hands of the privileged few," Castro said.
He added this tax would affect less than 1 percent of the wealthiest heirs in the country but would raise more than $250 billion in revenue over 10 years, consistent with 2009 estate tax levels.
Additionally, Castro proposed a "wealth inequality tax" that would tax income from capital and income from labor the same way as well as raising the capital gains rate for individuals who earn $400,000 or more a year to 40 percent.
The plan includes other tax provisions such as repealing President Donald Trump's tax bill and closing a loophole that allows individuals to not pay taxes on investments that would be inherited by an heir.
It would also establish what Castro called a "Working Families First Credit" that would provide $3,000 per child for every family as well as expanding and reforming the Earned Income Tax Credit.
"We should restructure the EITC to include all dependents, low-income independent students and workers below the age of 25 and above the age of 65, ensuring folks that care for family members also have support," he said.
Other provisions include a $15 minimum wage, passing the Equal Rights Amendment and investing in Universal Pre-K and child care programs.