Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
NEW YORK estate tax (old level) any thing over 100,000(federal was 600k at the time) was taxed at 55%
so if your parent bought a house in 1965 for 20k (THE GOING RATE) and in 2005 it was worth 450k (AGAIN THE GOING RATE) YOU would be taxed 55% of 350k ....do you think the average working class kid who just lost his parents has 192k just laying around....nope they will have to DUMP thier family home (and probably their residence) in a SHORT SALE and lose even more
its happened
In your example, your mythical child who inherited his parent's home worth $600,000 would be liable for no estate tax in New York, as there is a $1,000,000 exemption.
An estate is required to file a New York State estate tax return if the total of the federal gross estate plus the federal adjusted taxable gifts and specific exemption exceeds $1 million, and the individual was either:
a resident of the state at the time of death; or
a resident or citizen of the U.S. at the time of death but not a resident of the state, whose estate includes real or tangible personal property located in the state.
The federal exemption is currently $5,120,000. Not bad for winning the sperm lottery.
According to the Center on Budget and Policy Priorities, "Permanent repeal of the estate tax would cost almost $1.3 trillion over the first ten years in which its cost would be fully felt, 2012-2021. This includes $1 trillion in lostmrevenue and $277 billion in increased interest payments on the national debt."
The real question is why shouldn't someone pay tax on inherited property that they did nothing to earn or work for? Since a very small fraction of, something like 0.3% of all inheritances are subject to the tax, what is the economic benefit of handing down fortunes of rich people tax free to their heirs, who didn't lift a finger to earn it?
In your example, your mythical child who inherited his parent's home worth $600,000 would be liable for no estate tax in New York, as there is a $1,000,000 exemption.
Estate tax
The federal exemption is currently $5,120,000. Not bad for winning the sperm lottery.
Taxing the poor less would be a start. It seems that those will less pay more. Taxing the rich out of existence would thwart those that are ambitious - who want to gather up wealth- who want to make something of themselves- their are the super super rich - they don't pay any tax- The common millionaire does get taxed- to harm this group- kills any idea that poor folks would have about getting rich..."why bother if someone is going to take it all"
These are the two most important things you need to know about the death tax:
Its roots:
Quote:
Taxation of property transfers at death can be traced back to ancient Egypt as early as 700 B.C.4 Nearly 2,000 years ago, Roman Emperor Caesar Augustus imposed the Vicesina Hereditatium, a tax on successions and legacies to all but close relatives.5 Taxes imposed at the death of a family member were quite common in feudal Europe, often amounting to a family’s annual property rent.
Its results:
Quote:
When compared to revenue generated by taxes on individual or corporate income, the scope of the transfer tax system is also narrow (Figure G). With few exceptions, revenue from Federal estate and gift taxes has lingered between 1 percent and 2 percent of Federal budget receipts since World War II, reaching a post-war high of 2.6 percent in 1972. In recent years, Federal estate and gift taxes have made up about 1 percent of total budget receipts.
In your example, your mythical child who inherited his parent's home worth $600,000 would be liable for no estate tax in New York, as there is a $1,000,000 exemption.
Estate tax
The federal exemption is currently $5,120,000. Not bad for winning the sperm lottery.
According to the Center on Budget and Policy Priorities, "Permanent repeal of the estate tax would cost almost $1.3 trillion over the first ten years in which its cost would be fully felt, 2012-2021. This includes $1 trillion in lostmrevenue and $277 billion in increased interest payments on the national debt."
The real question is why shouldn't someone pay tax on inherited property that they did nothing to earn or work for? Since a very small fraction of, something like 0.3% of all inheritances are subject to the tax, what is the economic benefit of handing down fortunes of rich people tax free to their heirs, who didn't lift a finger to earn it?
Well CBPP lied their freaking asses off and you sucked it right on up. As I just showed revenues from the estate tax average about 1% of federal budget receipts.
2012 -
Revenue - $2.5 trillion x .01 = $25 billion
$25 billion x 10 years = $250 billion.
Your liberal ragtag "analysis center" lied its ass off. Even is they got the post war "high" of 2.6% that's still only $650 billion over 10 years.
Last edited by BigJon3475; 06-19-2012 at 08:26 PM..
I mean, the top 10% income earners pay a whopping 71% of the nation's taxes, while the bottom 50% earners pay NOTHING! And this problem of tax burden inequality is getting worse and worse. Before Obama took office, 45% of Americans paid no tax, now it's up to 50%! Does it really make sense to tax the rich even more? It is a complete lie when liberals say that the tax burden has fallen on the middle class, beacuse the facts just don't back that up. How can they say that when the bottom 50% pay NOTHING?! Why not have a flat, fair tax system instead? Let's say the tax rate is 20%. If you earn $30,000 a year, you pay $6,000 in tax. If you earn $1 million a year, you pay $200,000 in tax. It's simple and fair.
Did you know that 6.1 billion hours per year are spent on interpreting the tax code (by accountants) in America? (I am a tax accountant myself). The tax code is absolutely outrageously complex to the point where you know something is just wrong.
I think the corporate tax rate should be reduced to ZERO. That would immediately create 8 million jobs and bring our jobs back on American soil and leave China in the dust. This would create 8 million new taxpayers, which of course, increases revenue for the government. Isn't that common sense?
Well CBPP lied their freaking asses off and you sucked it right on up. As I just showed revenues from the estate tax average about 1% of federal budget receipts.
2012 -
Revenue - $2.5 trillion x .01 = $25 billion
$25 billion x 10 years = $250 billion.
Your liberal ragtag "analysis center" lied its ass off. Even is they got the post war "high" of 2.6% that still only $650 billion over 10 years.
Under current law, revenues from estate and gift taxes will total $420 billion, or 1.2 percent of revenues, over the 2010–2019 period, CBO forecasts (see Table 2). About $364 billion (87 percent) of that total is from estate tax receipts, and the remaining $56 billion (13 percent) is from gift tax receipts, an unusually large portion of which are concentrated in fiscal year 2011.
Remember, that's with the current generous exemptions. Even at that, $364 billion isn't trivial and goes a long way towards deficit reduction without placing any hardship on people.
According to the CBO:
Remember, that's with the current generous exemptions. Even at that, $364 billion isn't trivial and goes a long way towards deficit reduction without placing any hardship on people.
That was from 2009 before Obama continued the Bush tax policy.
Anyways, lets say that under current law all tax cuts expire at the end of 2012, payroll tax goes back to what it was and the AMT fix disappears. Revenue from taxes are already set to increase $2.6 trillion from years 2011 - 2021 using OMB historical data estimates. That means revenue goes from $2.3 trillion in 2011 to $3.9 trillion in 2017 (all the way to $4.9 trillion in 2021 if you use the average rate of increase per year).
In 2017 the OMB is still estimating a $612 billion deficit. With an increase of taxes to 30% on $1,000,000+ ($50 or so billion a year) and the $42 billion from estate taxes you're still looking at a $520 billion dollar deficit.
That, of course, is under the assumption that raising taxes $260 billion a year (basically the cost of the "stimulus") will have no effect on the economy whatsoever.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
