Posted on 12/23/2010 6:07:54 AM PST by governsleastgovernsbest
Jeffrey Sachs has attacked distinguished military historian Victor Davis Hanson as an "extremist" who "has done more harm to the American people" than any other commentator.
Sachs, a Columbia prof and income redistributionist supreme, launched his surprising verbal assault in commenting on Hanson's National Review Online column, "The Obamites' About-Face." Hanson there makes the case that out of political pragmatism, Obama has flip-flopped on everything from "the environment, radical Islam, taxes, stimulus, the economy, national security" to foreign policy.
View video here.
(Excerpt) Read more at newsbusters.org ...
That was my first thought too. Leftwingers are just really challenged when it comes to behaving like grownups.
Why not just tax them when they are realized? After all, that's when the heir will actually benefit from them. I see no reason to keep the tax linked to someone's death.
>> I think we should do away with the death tax, and replace it with a tax on whatever assets are in an estate that have not previously been taxed, such as the unrealized capital gains on a house, stocks/bonds, and untaxed retirement funds. <<
Agreed. That approach would seem both fairer and economically more efficient. Beyond the well-taken moral/ethical/philosophical objections to the current system, there’s no telling how much “dead weight loss” the estate tax imposes on the economy — except to say that it must be A LOT.
>> Some would add the untaxed life insurance proceeds — that’s not as clear to me since you did pay tax on the money you use to BUY the insurance, and technically the insurance pays out less than it’s cost. <<
That would seem both unfair and economically inefficient. So let’s hope it never occurs. And at least the life insurance would be on the right side of this sub-issue!
>> Of course, life insurance companies essentially survive on the money they take in because of the death tax, since it is one way to pass your money on without the death tax rates. If I pay a million dollars to a company to get a 900,000 payoff when I die, that’s only a 10% tax, vs the 35% I’d get under the latest scheme <<
Exactly. If it weren’t for the life insurance lobby, we probably would have been able to get rid of the estate tax years ago.
>> Why not just tax them when they are realized? <<
Certainly would be better than taxation at time of death. Moreover, I’d want to institute a “rollover exemption” for ALL capital gains, not just those gains tied to a deceased owner.
But I suspect those ideas are much less politically feasible for the time being than would be a straightforward substitution of capital-gains-at-death for the current estate tax. I think a half-loaf now might be much better than waiting 10 or 15 years for a full loaf!
I guess if the asset is being transferred intact to a single heir, you could simply transfer it at the cost basis, rather than at the current value basis.
Although from a practical perspective, it’s hard enough for a person to keep track of their own cost basis for everything they own (especially for things like mutual funds or stock funds where the dividends are reinvested) — I’d hate to have to track that information across generations.
Still, you could allow the inheritor the choice; let the estate pay tax to the current value and then inherit, or inherit at the cost basis determined by the estate.
I was thinking more about liquidation when I suggested taxing the untaxed portion.
Well, them and the lawyers who specialize in estate tax avoidance schemes.
Do you have a source for that? I see nothing about Sachs that leads me to think he's got a high IQ.
Just the opposite, in fact.
If I may be so bold as to offer advice to Governor Palin, it would be to hire VDH as a policy advisor, or some similar post. He has a brilliant analytical mind and knows the historical aspects behind most any issue.
This is not criticism of Sarah. She’s a sharp lady in my estimation; it’s just that Dr. Hanson would be a real asset to a campaign I believe.
VDH visits a local conservative show here every Wednesday for a half an hour. I set that time aside and enjoy every minute of listening to a person that is actually sane and uplifting.
He calms me down just listening to him.
Thanks very much for the ping/post/reporting, Mark.
Who is this POS Sachs. VDH is one of the few “Americans” I have ever read that has NEVER ticked me off.
BUMP for Victor Davis Hanson!
Dear Mr. Sachs
Thank you very much for your comments/thoughts/ideas. Rest assured I will give them all the merit they so richly merit.
There's noting keeping them from spreading some of their own around is there?
If they think taxes are too low, they could overpay. But they don't.
If they want to give directly, thru charities, they could. But they don't do that, either. Liberals believe used underwear is sufficient charity.
Definitely a case of "Do as I say, not as I do."
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