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Normally an individual has paid taxes on the money that they spent to purchase the the things you inherit, so why should Uncle Sam benefit by the death of your loved one and charge you a tax for what they left you. If it's a financial windfall then you should be taxed when you withdrawal the money same as if it was 401K or an IRA but no additional taxes should be incurred because of the death. IMO
Buffet's among the biggest hypocrites of all time.
He's made a lot of his money on being able to purchase family owned businesses that were forced to divest due to the death taxes on an estate, and bought companies that were seriously in dire financial straits as a result at very favorable prices because he was a capable buyer.
His wealth has accumulated to a point where he could give away 90+% of his assets and still be a very very wealthy man, well able to maintain his lifestyle.
His $30 billion donation to the Gates Foundation is another sham deal re taxation ... it's just a way for him to shelter a lot of his money.
But for the rest of us ... it's a problem when we cannot afford to buy into such exemption situations. I know that my farm will not be exempt from death taxes upon my passing ... and my heirs, under current tax laws, will be forced to sell it to pay the taxes on it.
The gift and estate tax is a voluntary tax. There is plenty you can do it about, other than complaining about how unfair it is. By mere ownership changes, the majority of estate tax exposure for about 95% of the population gets eliminated. Knowing the way things work around here, I would think that most people would seek advice on that here, on this BB.
The gift tax system is a companion of the income tax system -- it "keeps the income tax system honest" so to speak. It also performs similar functions with regard to the estate tax systems.
As far as scams, farce, or anything else you want to call it -- Buffett giving wealth to the Gates Foundation does avoid having the wealth subject to estate taxes -- however, it avoids estate taxes because he is giving it away. He is not sheltering it -- he is giving it away. Don't tell me how the kids can get money from salaries, compensation, benefits, perks, etc. They could do that anyway with .$50 on the dollar money -- not anywhere near the amount in charitable money.
Buffett and Gates (specifically Gates' father who was at the forefront) have long supported the estate/transfer tax system. This is nothing new.
Buffet's among the biggest hypocrites of all time.
He's made a lot of his money on being able to purchase family owned businesses that were forced to divest due to the death taxes on an estate, and bought companies that were seriously in dire financial straits as a result at very favorable prices because he was a capable buyer.
Don't forget Buffet's second hypocrisy: Berkshire Hathaway's biggest investments are in insurance companies, who make a mint selling life insurance to business owners who are forced to buy it in order to pay estate taxes.
The real impact of the death tax is on small business and farms where big taxes are due upon the death of the owner. Family and employees are often severely affected when these enterprises to be sold to cover taxes. My only close experience is with a neighbor who inherited a small truck service company and was forced to sell to cover taxes... the new owner consolidated operations into an existing company and all 19 employees were released with little compensation and no pension.
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