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The estate tax disappeared for 2010, in one of the final steps of President George W. Bush’s 10-year tax-cut measure. But next year, when the Bush tax cuts expire, the estate tax springs back to life — at its pre-2001 level of 55%.
Wednesday’s amendment to repeal the estate tax was offered by Sen. Jim DeMint (R., S.C.), in the midst of debate on a bill to extend jobless benefits. The amendment failed by a wide margin of 39-59. The vote was almost entirely on party lines, although two Democrats – Sens. Blanche Lincoln of Arkansas and Ben Nelson of Nebraska – joined Republicans in voting “yes.”
Assuming that most posters here belong to the middle-class, the ignorance on this subject and the tendency for self-destructive behavior in economical matters of said posters is astounding.
Read it up, and educate yourselves on the income brackets affected by this tax. Modern Feudalism rears its ugly head...
I know people play number games with the "55%" tax rate and there are estate plans that can minimize the amount of taxes on the estate. But I would love to see this tax abolished!
The 55% rate is misleading. It is calculated as follows:
"For amounts over $3,000,000, the tentative tax is $1,290,800 plus 55% of the excess over $3,000,000."
I sincerely doubt most people here railing against the "death tax" will leave an estate that large anytime soon.
As for the "already taxed" argument that is misleading too. Think about inheritance as income to the person receiving it. Money you receive in exchange for work, i.e. your income, comes from various revenue sources most of which have also been taxed at some point. For example if 100% of your paycheck came directly from revenue gained by your company through direct sales to individuals, the money would have already been taxed when it was paid to the individual customers as income. It is taxed again when paid to you as income.
Why shouldn't money that you did not earn yourself be taxed?
It's not misleading. The person who died earned the money after taxes, thus it has been taxed. They choose to leave it as a gift to a family member and it's taxed. Why should the government have it's hand in a transaction between parent and child like that?
It may not even be in the form of cash. If someone hands down real estate, the heirs may have to sell because they don't have the cash to pay the tax. That's just wrong. I know people that were forced to sell a home that was paid for because of the tax.
If a person bought 3 or 4 houses on a 'normal' street in SF (for example) back in the 1970's,what would they be worth today?
What about if a car guy bought a few old 'race cars' back in the 1970's that just happened to be a Shelby Cobras....
Seems this is just envy and class warfare.
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