Skip to comments.Protect the Farm, Tax the Manor [next year, law calls that there be no Estate Tax at all..]
Posted on 11/21/2009 9:27:35 PM PST by fight_truth_decay
HOW do you tell a wealthy heiress from a family farmer? It sounds like the setup for a joke. But in fact it is the fundamental problem underlying sensible reform of the federal estate tax.
Members of Congress are hoping to revise the current law on the estate tax by the end of this year; if they dont, the estate tax will disappear for a year. Lawmakers should use the opportunity to solve the farmer/heiress riddle once and for all and move our tax system closer to the values on which the country was founded that hard work should be rewarded and power should not be conferred by birth.
(Excerpt) Read more at nytimes.com ...
Democrats, argue that we should return to lower exemptions and higher rates so that the wealthy can contribute much-needed dollars to the nations recovery.
The Merchandise Mart, the Chicago-based real estate conglomerate Joseph Kennedy established in '35, was the most valuable asset belonging to Ted Kennedy and his family. In 1974 Joseph Kennedy divided Merchandise Mart's ownership among numerous family members, including Ted, in the form of a trust that was domiciled in the Pacific island of Fiji. Because the trust was based in Fiji, it was not subject to the taxes normally imposed on trusts domiciled in the United States.
Here’s a radical notion: how about making one tax law that is fair and treats everyone equally without “trying to get even with the rich”?
Zero is a fair amount.
True - the children of millionaires didn’t do anything to earn it, but neither did the government.
The rich don't pay taxes, they have "charitable" foundations with which to shelter their expenses.
And they already paid tax on that money and should be able to do whatever they want with it, even if they’re dead.
Income taxes, without variation, always are disproportionately paid by the middle and upper-middle income brackets.
The super-rich find ways around it, and the poor don’t have it to begin with.
Sounds great. Only problem is, it’s the middles and upper-middles who employ 3/4 of the people out there.
Answer? 10% VAT, no income tax, no estate tax, no other tax whatsoever.
And government has to spend the equivalent of 10% of our consumer output, or less. If their budget doesn’t reflect it, then there’s a nationwide referendum on whether to lower spending, or raise the VAT.
PS. VAT = Value Added Tax (sales tax).
..children are often "a part of the whole" wheel in working the "farm". Many small companies/ small business are made up of "family" who are dedicated and work together for decades successfully.
Government has become the "Boogie Man" in the night you were told about as a child, which had you checking under the bed!
But officer, you can see it was accident. Mommy and daddy accidentally slipped and fell upon the same hunting knife...four times.
Al Gore: Except for wealthiest, exempt people from estate tax
GORE [to Bush]: Under the plan that Ive proposed, 80 percent of all family farms will be completely exempt from the estate tax, and the vast majority of all family businesses would be completely exempt, and all of the others would have sharply reduced. The problem with completely eliminating it goes back to the wealthiest 1 percent. The amount of money that has to be raised in taxes from middle class families would be a heavy burden.
BUSH: Eliminate the death tax completely because people shouldnt be taxed twice on their assets. Its either unfair for some or unfair for all. I think if youve got tax relief, everybody benefits.
Define "rich". Regardless, Carl Levin has a plan:
"Higher-income Americans should be taxed to pay for more troops sent to Afghanistan and NATO should provide half of the new soldiers, said Carl Levin, chairman of the Senate Armed Services Committee. An additional income tax to the upper brackets, folks earning more than $200,000 or $250,000 a year, could fund more troops, Levin, a Michigan Democrat, said in an interview for Bloomberg Televisions Political Capital With Al Hunt, airing this weekend."
Example: Theresa Heinz Kerry in 2003 reported over 5,000,000 in income and yet she only paid 587.000 in federal tax.
An article on the virtue of hard work by a fellow named Madoff???
And you say this based on your personal experience with great wealth?
Or on your envy?
Nah. The real reason is that they don't have taxable income.
A little old lady in Miami that owns her home outright, and gets 3% on $1,000,000 in the bank is rich but has an income of just $30,000/year.
Or the kid that inherited $2,000,000 in tax exempt municipal bonds at 4% gets $80,000/year to play with.
We don't tax the rich. We tax those with taxable income.
This statement is not supported by the facts.
In 2007 the top 1% of earners paid over 40% of all Federal income tax. The top 5% of earners paid over 60%. In fact, income taxes are always diproportionately paid by the highest earners; and the disproportionality has been steadily increasing.
Anyone richer than myself...!
No it's based upon published research re the regulatory influence racket it funds.
So she paid $587,000.
You made an unqualified statement, "The rich don't pay taxes." I'm going to guess Teresa Heinz paid more of the government's bills in 2003 than you.
This will be a moot point as soon as Obama takes over ownership of all farms and estates.
As a percentage of her income, she paid less than a quarter what we did.
Bush’s cuts in lower-middle-class tax rates was one of the several incredibly stupid things that he did. In pursuit of a goal that could never be achieved en masse (making people earning $20,000-$50,000 a year feel a common cause with entrepreneurs and executives) he instead inflicted an injury the depth of which we are only now beginning to feel: making people earning $20,000-$50,000 feel that the government services are on a net basis, given to them and not paid for by them.
If the tax exemption received by municipal bond holders was eliminated and local government was to pay prevailing interest rates , one would get extreme sticker shock when their property and school tax bills arrive in the mail. Oh I rent one says, then your landlord will be the recipient of the tax increases.
Your Response: Nah. The real reason is that they don't have taxable income.
Read the headline, this is about ESTATE taxes, not income taxes. And the rich do avoid the estate tax through charitable foundations.
Close, but no cigar. The trouble with the VAT is that it's too easily hidden. Make it a retail sales tax, so every consumer knows how much they're paying.