Obama Calls for the Largest Increase in the Death Tax in U.S. History - 45% (dollar, money)

[nvxplorer]

Originally Posted by kdbrich

Farms were just the example I gave. Other businesses would probably apply, as well.

Okay, but I suspect you used "the family farm" because it is a right-wing talking point.

I don't believe a business should have to get a loan to pay taxes because the owner died.

That's your right. I believe otherwise. The estate tax functions to keep a balance between rich and poor.

[tablemtn]

Considering the decease assumably paid their share in taxes during their lifetime, why should their heirs have to pay taxes again?

Estate/inheritance taxes are actually one of the oldest types of taxes. The general policy aim was twofold:

1. Draw tax from where it would be "least painful" to the citizens and the economy (if you don't take it from the dead, you'd have to take it from the living)

2. In democracies, to keep the formation of oligarchies somewhat in check. Many of the founders feared that the lack of an inheritance tax would lead to a Roman-style oligarchic class, and the downfall of the democratic system.

[proudmama]

Originally Posted by southernnaturelover

Couldn't the parents get around this tax by deeding the property over to their children before they die (if it's paid for)?

Yes, thats how some folks get around that rule. However when it has to do with cash, (who has that much these days), the banks will report anything over 9999.00 I believe, that may have changed.

[nvxplorer]

Originally Posted by southernnaturelover

Couldn't the parents get around this tax by deeding the property over to their children before they die (if it's paid for)?

No. A gift tax would apply here.

[harborlady]

Originally Posted by GregW

So set the exemption to 10 & 15 mil and 90% on the rest while eliminating the charitable foundation tax dodge. The kiddies will just have to suffer on so little. My heart breaks.

BTW - My total inheritance was $200. I invested the money. Wasn't worth much then and isn't worth much now.

Lucky you Greg. I inherited debt!!! My dad thought he did the right thing and paid his own way, but really it wasn't so.

[Kootr]

Originally Posted by proudmama

Leave it to you Kootr to find articles and posts misleading links. I know I know your going to say thats how the editor worded it.

Misleading links! You're funny!

[ViewFromThePeak]

Originally Posted by FinkieMcGee

Leave to go where? Hell?

They can leave the country so their children can get their assets without Uncle Sugar getting being able to get in on any of it.

[CharlottePirateFan]

Originally Posted by nvxplorer

No. A gift tax would apply here.

But that would be about 1/2 the tax of what's proposed here, I believe.

[FinkieMcGee]

Originally Posted by ViewFromThePeak

They can leave the country so their children can get their assets without Uncle Sugar getting being able to get in on any of it.

And thus the oligarchy can continue.

[nvxplorer]

I don't know about the current proposal, but there have been exemptions for family farms and other businesses in the estate tax law, so the cries of "losing the family farm" may be a bit misguided.