Skip to comments.Obama Plans to Keep Estate Tax
Posted on 01/12/2009 4:50:56 AM PST by docbnj
The Senate Finance Committee will move within weeks on legislation to reverse that law, and Mr. Obama is expected to detail his estate-tax preservation proposal in his budget next month, congressional tax writers said. Under the Obama plan detailed during the campaign, the estate tax would be locked in permanently at the rate and exemption levels that took effect this year. That would exempt estates of $3.5 million -- $7 million for couples -- from any taxation. The value of estates above that would be taxed at 45%.
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This may not seem important for middle-class people, but bear in mind that with inflation, everyone will eventually be hit by this "death tax."
So, within a few years, inflation will eat away at that exemption level, and 'ordinary' people will be hit hard by the Obama Estate Tax.
I think it should be abolished, but the truth is, at this point in time, many people who would have been hit by it are less likely to be affected by it now.
Property values have decreased, portfolios have plunged...if inflation hits, of course, it will affect more people, but in the next year, at least, many who would have been affected by it, won’t be because of the present economic situation.
This tax is plain and simply immoral. My grandmother, who had nothing most of her 88 year life, said that. That money has been taxed how many times over?
So the more successful you are, the more you are punished.
I have never understood the reasoning for this tax.
The wealth of people was accumulated post taxes. They or their parents have already paid taxes on the wealth. Now the feds think they are due 45% of the wealth in the upper brackets.
That is pure and simple thievery. They don’t deserve one cent on those funds, or material wealth.
There are more lazy poor than hard working rich. The poor hire Rats to steal for them.
The poor don’t support themselves or America.
Democrats use the Robin Hood rule well half of it anyway rob from thr rich(anyone with money) and keep it.
Did Caroline Kennedy pay a 45% estate tax?
enquiring minds want to know
Gee, this seems to keep nagging at me, but there's something about the estate tax that just isn't right.
. . . . . . . . . I wonder what that could be?? . . . . . . . . . Hmmmmm . . . . . . maybe double taxation, which is specifically against the law??
Nah, couldn't be anything like that!!!
In all seriousness, I know that the estate tax didn't start with Obama, it's been with us for a long time. The estate tax is one more example of how irrevocably broken our government is. Why should ANYONE have to be taxed again on items remaining in a deceasd's estate that taxes have already been paid???
“So the more successful you are, the more you are punished.”
The lazy poor who voted for Obama because they believed this hope and change BS will soon come to their day of reckoning. They were stupid and gullible enough to believe that Obama was going to make everyone share the WEALTH. What they failed to see was what Obama meant. He meant that abject poverty and dependence on government would be shared by all, except of course, by all but the ruling elite class.
The class warfare got the Big O elected.
Maybe the Obots ought to start taking their tattered t shirts and printing on them “ I voted for Barack and all I gotz is this lousy t shirt”
the reason this tax “survives” is that probably almost no one except schmucks pays it
Do you think the Kennedys, Bushs, Reagans, Rockefellers, Heinzes’ (and Heinz-Kerrys), Edwrads (as in Two-Americas John), Cuomos, (Nan) Pelosis, (Harry) Reids, (Dianne) Feinsteins, Bloombergs yada yada yada
pay (or plan to pay) 45% of their estates to federal tax?
Even middle class family farmers have to hire attorneys to craft tax avoidance schemes to keep their land in their families
It was once said about Mario Cuomo that he never met a program that he didn’t like...
I think it will be prescient and fair to guess that the re-distributionist Socialist who is to be inaugurated on January 20th will seldom meet a tax he does not like.
Wouldn’t setting up some sort of *trust* enable one to avoid estate taxes?
The big problem is, we have allowed the political class to imagine that our money is really their money. Until we change that, we will continue to finance every scheme they can come up with.
“Obama Plans to Keep Estate Tax”
What???? But, but, what about “change?”
I think the reasoning, pure and simple, is wealth redistribution. They cannot let folks accumulate wealth in families.
Except that Robin Hood was brave enough to rob from the rich while they were still alive.
“Did Caroline Kennedy pay a 45% estate tax?”
Interesting you ask. She was interviewed on this recently —
Interviewer: “What is your opinion about whether the estate tax should continue?”
Caroline: “You know, i, you know.. it’s needed, you know, to keep the rich from, you know, amassing too much, you know, wealth.
Interviewer: “Well, didn’t you have to pay a large amount yourself?”
Caroline: “Well, you know, remember... I’m, you know, Royalty, and, you know, Royalty doesn’t, you know, pay taxes.”
While I don’t disagree on that point, I want to know why. What is bad about our nation’s long term families establishing a base of wealth? This policy is about the most anti-American policy I can think of.
The U.S. Senate has followed the House in voting to repeal the estate tax. Estate tax supporters claimed that from the beginning, it was designed to redistribute wealth. But history shows the it existed solely for revenue purposes until the 1930s.
President Franklin Roosevelt raised the top rate to 60 percent in 1934, and to 70 percent in 1935. The same bill increased the top income tax rate to 75 percent and increased corporate taxes. Altogether the law raised just $250 million annually.
Hmmm...a tax that’s really just good for attorneys and tax consultants? ;)
“The lazy poor who voted for Obama because they believed this hope and change BS will soon come to their day of reckoning.”
Is that ever true! Especially for the slobs who actually thought the Great and Wonderful O would pay their rent and gas expenses.
I agree with you, but to a socialist family wealth is BAD. Well, unless it’s THEIR family wealth. But, for some reason this is a fairly easy argument to make among the poor masses. I think it really all comes back to class envy.
I won't. Poor and all that.
Yep, the key term is that it would fix the value PERMANENTLY. But on the bright side, 3.5 million is a heck of a lot better than the previous $600,000. We can look to eliminate it permanently in the future.
The reasoning is that socialists want to eliminate the right of inheritance in order to eliminate the "rich".
Don't forget insurance salesmen (cough, Warren Buffet, cough).
Since the tax has been about 50% since FDR, then headed towards 75% of the Kennedy family wealth should have been turned over to the government (Joe and Rose Kennedy and six of their nine kids have died). If they have kept the majority of it out of government's greedy hands, then they are using tricks they don't want all the "little people" like farmers and small businessmen to use.
I think your responses were fairly close to each other, so I’ll respond to you both. Do you think there is some ingredient in there, that sees long term U.S. Citizens punished for their inheritance? It’s as if the powers that be want to reduce the influence of long term citizens, as much as they possibly can.
If you take this multicultural vent we’re on right now, diversity and pumping up our differences, and trying to make us non-cohesive, it really seems to me there is much more to this than simple class envy.
It almost seems as if the natural born citizen is public enemy number one. It seems almost compulsive to destroy that which makes us strong.
If you watch as our manufacturing is moved off shore. You watch as our R&D follows this manufacturing. You watch as our scientific accomplishments are stifled, You watch as our space effort is given short shrift, our super collider cancelled, our major accomplishments termed international in scope. You watch as our long term citizens are stripped bare. You watch as foreign nationals are valued above the long term citizen. You watch as people from terrorist states are allowed to move here at will. You watch as we are occupied by a poor nation to the south, that saps off our wealth. At some point you have to take note that this all acts to one purpose.
The United States is being taken down by design.
The aim is a totally socialistic society where there is no such thing as private property. Confiscation of wealth after death by eliminating the right of unheritance is part of the plan.
I agree that is part of it, no doubt.
Absolutely......almost! I would suggest one minor change to the statement.
"The United States
is being has been taken down by design."
The Law of Unintended Consequences will have fatal results for many successful people in 2010. Let’s say you’re sick and old and don’t have much time to live. The logical thing to do is commit suicide before 2011 in order to preserve your estate for your beneficiaries. On the flip side, many beneficiaries will have a big incentive to murder their benefactors.
Funeral homes might be a good investment next year.
Actually, I think it’s fairly simple to keep it out of their hands, if you are willing to go to a professional. My husband is in the business, and there are legal ways to avoid it. So, it’s a stupid tax in addition to being just wrong. But it makes the democrat voters feel good because they THINK they are socking it to those awful horrible rich people!
It's quite possible the congress critters want to show their constituents exactly that (the ones who hate the rich and hate non recent immigrants etc). However, it's difficult to believe they don't understand that the tax doesn't really do that. I wonder if they will change the laws to make it impossible to get out of? I'll have to ask my financial adviser about that one.
They can gift at least some of the money and use trusts instead of something quite so draconian!
Right now there are living trusts or some such, but I don’t think everyone is savvy enough to set those up in time. I would hope they were. IMO, it’s probably a high priority to take the inheritances away from our citizens. The rich must pay and all.
I am so against this. It goes against everything I believe in with regard to this nation.
I’m with you there.