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Old 11-15-2007, 02:21 PM
 
1,408 posts, read 4,454,197 times
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Quote:
Originally Posted by JoeP View Post
There is no death tax.
Thanks for that "postcard" from the Land of Make-Believe.

Just because you don't recognize the Death Tax as a death tax, doesn't mean it doesn't exist.

This is no different than liberals in Reagan's day...since they didn't want to see the USSR as a threat, well...there was "no such thing" as an aggressive, dangerously expansionist Soviet empire!

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Old 11-15-2007, 03:24 PM
 
7,278 posts, read 13,525,158 times
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Quote:
Originally Posted by LancasterNative View Post
Thanks for that "postcard" from the Land of Make-Believe.

Just because you don't recognize the Death Tax as a death tax, doesn't mean it doesn't exist.

This is no different than liberals in Reagan's day...since they didn't want to see the USSR as a threat, well...there was "no such thing" as an aggressive, dangerously expansionist Soviet empire!

I think the point is that the term "Death Tax" is a misnomer. There certainly isn't a tax on dying. The tax comes with transferring property after the death. The transition of the estate. An estate tax.
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Old 11-15-2007, 03:35 PM
 
66,460 posts, read 30,309,848 times
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From the USDA's Economic Research Service:

"Despite these changes and targeted relief to farmers and owners of small businesses, because of appreciating land values and increasing farm size, a larger share of farm estates are subject to the Federal estate tax. While about 1 percent of all estates currently owe Federal estate tax, between 3.5 and 4 percent of all farm estates and nearly 18 percent of commercial farm estates currently owe estate taxes. While existing law provides for the phase-in of additional reductions in Federal estate taxes, considerable uncertainty clouds the longrun effects of these changes due to the scheduled 1-year repeal of the tax in 2010 and a reversion to 2001 law in 2011."
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Old 11-15-2007, 03:39 PM
 
Location: SE Arizona - FINALLY! :D
19,872 posts, read 22,780,530 times
Reputation: 7186
Quote:
Originally Posted by CarolinaBredChicagoan View Post
I think the point is that the term "Death Tax" is a misnomer. There certainly isn't a tax on dying. The tax comes with transferring property after the death. The transition of the estate. An estate tax.
Yeah, but this is all just arguing symantics. Those opposed to the tax call it a "Death Tax" because it sounds more ominous and cruel, while those in favor of it call it an "Estate Tax"" - which admittedly is the proper name (what the IRS refers to it as) but which also sounds a bit less odious.

It's all about putting the spin you want on it.

LOL

Ken
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Old 11-15-2007, 03:40 PM
 
19,183 posts, read 28,376,156 times
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Quote:
Originally Posted by LordBalfor View Post
This seems to indicate the tax rate is MUCH higher than you mention. ...What am I misunderstanding here?
The difference between marginal and effective rates...
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Old 11-15-2007, 03:42 PM
 
Location: SE Arizona - FINALLY! :D
19,872 posts, read 22,780,530 times
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Quote:
Originally Posted by saganista View Post
The difference between marginal and effective rates...
Care to elaborate for us ignorant folks out here?
Your post really didn't tell me anything (no offense).

Ken
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Old 11-15-2007, 03:53 PM
 
1,408 posts, read 4,454,197 times
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Quote:
Originally Posted by CarolinaBredChicagoan View Post
I think the point is that the term "Death Tax" is a misnomer. There certainly isn't a tax on dying. The tax comes with transferring property after the death. The transition of the estate. An estate tax.
That's true...as far as the law on the books (de jure) the tax only applies to the transfer of property.

But in practice, when do such property transfers generally occur? Yes...it is therefore a de facto "death tax"
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Old 11-15-2007, 04:10 PM
 
7,278 posts, read 13,525,158 times
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Quote:
Originally Posted by LancasterNative View Post
That's true...as far as the law on the books (de jure) the tax only applies to the transfer of property.

But in practice, when do such property transfers generally occur? Yes...it is therefore a de facto "death tax"
Yes. I know that. However, we can't all go around calling things whatever we want and then protesting when people tell us those things don't exist.

If we can, then I vote we call the estate tax the "Posthumous Philanthropy Award" or some such nonsense.
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Old 11-15-2007, 04:43 PM
 
19,183 posts, read 28,376,156 times
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Quote:
Originally Posted by InformedConsent View Post
From the USDA's Economic Research Service...
And where is the part about the the estate tax 'wiping out' family farms and small businesses, something you earlier claimed to have seen many, many times on a personal basis? All that is claimed here is that 4% of farm estates owe any tax at all. So let's look at those. Of all the estates that owe tax and include indentifiable farming assets within them, the proportion of the total estate that is attributable to farming assets averages around 10%. These are not family farmers. These are wealthy financiers, industrialists, and high-level corporate types who purchased and operated horse farms and the like as a sideline or hobby and as convenient weekend and/or holiday get-away spots. Not quite the group that's likely to be crushed or devastated by the inheritance tax...
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Old 11-15-2007, 05:14 PM
 
19,183 posts, read 28,376,156 times
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Quote:
Originally Posted by LordBalfor View Post
Care to elaborate for us ignorant folks out here?
Your post really didn't tell me anything (no offense).
None taken. The marginal tax rate is that rate at which the last eligible dollar is taxed. The effective tax rate is the rate at which the corpus as a whole is taxed. The concept is most easily seen in the matter of good old income taxes. If last April 15 you were married filing jointly and had taxable income of $125,000, your marginal tax rate would have been 28%. But your actual taxes would have been $24,404. Divide that amount by $125,000 and you get an effective rate of just over 19.5%. The same effect occurs with the estate tax, where a variety of deductions, credits, valuation adjustments, and offsets intervenes between the top line (the total value of the estate) and the bottom line (the total amount of estate tax owed). On account of this effect, more than half of all estates that are required to file a federal estate tax return end up owing no estate tax at all...
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