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dirtbag
climber
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Dec 16, 2010 - 10:51pm PT
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Holy shitt, you guys reached 35000! Nice.
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bluering
Trad climber
Santa Clara, CA
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Dec 16, 2010 - 10:51pm PT
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Tell me, A.C.
EDIT: Sanders (I-VT)
That should read; Sanders (S-VT)
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dirtbag
climber
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Dec 16, 2010 - 10:52pm PT
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Has anybody justified the existence of the Estate Tax yet as a general idea, other than another way for the Fed to steal money from people who already paid taxes???
The people who inherited it didn't pay taxes.
I have an idea, let's tax people who work for a living instead so those who get $$$ without working because a rich relative died .
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bluering
Trad climber
Santa Clara, CA
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Dec 16, 2010 - 10:55pm PT
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The people who inherited it didn't pay taxes.
The dollars transferred were already taxed. You want to tax them again?
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dirtbag
climber
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Dec 16, 2010 - 10:56pm PT
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As an added bonus of getting rid of the estate tax, we can create an aristocracy so can enable rich people to sit on their asses!
"We don't pay taxes. Only the little people pay taxes."
 Leona Helmsley.
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dirtbag
climber
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Dec 16, 2010 - 10:57pm PT
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No Bluering, they were not taxed. They are getting free income. The people who initially worked for it paid taxes: they didn't.
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dirtbag
climber
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Dec 16, 2010 - 10:58pm PT
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Bluering, if you'd rather work hard and pay taxes so Paris Hilton does not, more power to you.
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HighDesertDJ
Trad climber
Swimming in LEB tears.
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Dec 16, 2010 - 11:01pm PT
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bluering said Has anybody justified the existence of the Estate Tax yet as a general idea, other than another way for the Fed to steal money from people who already paid taxes???
By this logic no income should ever be taxed, since it's all been taxed before. Why should the guy I buy my gas from have to pay income tax on it, since I already paid tax on it? The only difference here is the money is being gifted at the time of death. Except in certain cases and for limited amounts of money (50k or maybe 20k I can't remember), gifts count as income too and you have to pay income tax on them.
The problem here is simply one of semantics. Conservatives, in the name of helping m(b)illionaires, have done a great job selling the "death tax" propaganda. Get rid of the estate tax, count the inheritance as income like anything else and tax it as income. Political problem solved.
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bluering
Trad climber
Santa Clara, CA
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Dec 16, 2010 - 11:01pm PT
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No Bluering, they were not taxed. They are getting free income. The people who initially worked for it paid taxes: they didn't.
No, no, no. After they aquire they money (tax-free) from their inheritor, they'd be required to pay annual taxes, in my book, but not a blanket transfer tax (Estate Tax). They would pay taxes like everyone else on their estate equity level, but what you propose is triple taxation!!!!
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HighDesertDJ
Trad climber
Swimming in LEB tears.
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Dec 16, 2010 - 11:03pm PT
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bluering said No, no, no. After they aquire they money (tax-free) from their inheritor, they'd be required to pay annual taxes
Annual taxes on WHAT? There is no "annual tax!" The person inheriting the money would only pay tax on any money made through the profitable investment of that money and there are a billion loopholes there too. If I chose not to invest the money I would literally never pay a dime in taxes.
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bluering
Trad climber
Santa Clara, CA
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Dec 16, 2010 - 11:03pm PT
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HDDJ, see my reply to dirtbag.
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HighDesertDJ
Trad climber
Swimming in LEB tears.
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Dec 16, 2010 - 11:06pm PT
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Explain the "estate equity level" tax. As far as I know there is no such thing. And my post was different than his so actually read it.
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bluering
Trad climber
Santa Clara, CA
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Dec 16, 2010 - 11:08pm PT
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Hmmm, maybe I'm not hip to current tax code. I assumed that even without an 'income' you still had to pay taxes based on net-worth. To me, that would seem fair.
Maybe a knowledgable person on taxes could clarify...
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dirtbag
climber
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Dec 16, 2010 - 11:11pm PT
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That's not how it works bluering.
Under the proposed bill:
Say someone gets $10,000,000 through inheritance.
The first $5 mill is free.
The other 5 mill is taxed at 35%.
So, they would pay 5,000,000 x .35 (1.75 million).
That's it.
No more taxes on that sum. If they invest the money, then the earnings, not the principal, is taxed in future years.
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HighDesertDJ
Trad climber
Swimming in LEB tears.
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Dec 16, 2010 - 11:11pm PT
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A net worth tax? Seriously? You honestly thought such a thing existed?
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dirtbag
climber
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Dec 16, 2010 - 11:12pm PT
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And btw, I am somewhat sympathetic to claims that folks would be forced to sell businesses acquired through inheritance to pay estate taxes. However, there probably are ways around that without junking the estate tax entirely.
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HighDesertDJ
Trad climber
Swimming in LEB tears.
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Dec 16, 2010 - 11:13pm PT
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dirtbag- Yeah I agree.
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bluering
Trad climber
Santa Clara, CA
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Dec 16, 2010 - 11:13pm PT
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HddJ, if you have no income, yeah I do. Wouldn't it remedy the problem?
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JEleazarian
Trad climber
Fresno CA
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Dec 16, 2010 - 11:14pm PT
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Bluey,
There is no tax on net worth. the closest we have are various property taxes.
There is good reason why net worth should not be equal. My soon-to-be 99-year-old mother has no practical ability to earn money except through her wealth. My daughters, in their mid-20's, don't need wealth the same way my wife and I do -- at least if we hope to retire.
Once property is transferred at death, and the death taxes paid, the only other tax is on the income that property generates.
John
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bluering
Trad climber
Santa Clara, CA
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Dec 16, 2010 - 11:14pm PT
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And btw, I am somewhat sympathetic to claims that folks would be forced to sell businesses acquired through inheritance to pay estate taxes. However, there probably are ways around that without junking the estate tax entirely.
Suggesstions???
Skip?
John?
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