Republicans kicking the middle-class (opposing Death Tax)

[777]

. If your mom leaves you her $100,000 house and you sell it, you’ll pay about $15,000 in taxes, verses zero now.
.

What are you saying, you mean if estate taxes were applied to the middle class? They sometimes are, even now, and that site ONN is misleading:

The top federal estate tax is around 40 percent, and this year the estate tax exemption is $5.45 million per individual. In other words, a married couple would be able to keep $10.9 million from the federal estate tax.

True, in theory, but the exclusion amount is on the estate, not the heirs. So if you have a bunch of other heirs, you'll still be taxed at 40%.

You inherit an estate worth 100M, there are ten heirs - you will have to pay the estate tax on 4.45M at 40%.

How could you ever assess capital gains at the time of death? Sell them all? Liquidate all assets?

 

[Smyth]

What are you saying, you mean if estate taxes were applied to the middle class? They sometimes are, even now, and that site ONN is misleading:

With the repeal of the Estate tax, the Capital Gains tax would and should return to inherited assets, and then the middle-class would start paying taxes on inheritance. The call to end the "Death Tax" amounts to a call to reduce taxes on the rich and raise taxes on the middle class -- and is another black eye for the GOP when it comes to public perception that the GOP doesn't care about working people.

How could you ever assess capital gains at the time of death? Sell them all? Liquidate all assets?

You assess the capital gains at the time of sale of the asset. As it is now, you just pay capital gains on appreciation since inheritance (since the basis was adjusted when the Estate tax was applied). Without the Estate tax, you'd pay capital gains from appreciation since the deceased originally acquired the asset. The Estate tax eliminated inheritance taxes on the middle class and ended the nigh impossible burden of determining the original basis (meaning you'll over-pay capital gains taxes).

You inherit an estate worth 100M, there are ten heirs - you will have to pay the estate tax on 4.45M at 40%.

At the current rate, the Estate tax for $100 million estate would be 40% of $89.1 million.

 

[InTheLight]

With the repeal of the Estate tax, the Capital Gains tax would and should return to inherited assets, and then the middle-class would start paying taxes on inheritance.

The estate tax was repealed for a year a couple of years ago. Please show us where the capital gains tax returned to inherited assets that year.

 

[InTheLight]

It doesn't matter what it was in the past. In spite of you neoconservatives trashing the image of Republican party, portraying it as a party that doesn't care about the working men, by trying to get the estate tax repealed,

Is that what I'm doing? Huh...

the estate tax is is more a settled tax issue than ever. It has only recently become a permanent part of the tax code. Last year, the exemption was $10.9 million dollars, and it's indexed to inflation.

So if both the husband and wife own a farm and they both die in the same year, they can shield $10.9M from estate taxes. How likely is that to happen?

It’s official—for 2016, the estate and gift tax exemption is $5.45 million per individual, up from $5.43 million in 2015. That means an individual can leave $5.45 million to heirs and pay no federal estate or gift tax. A married couple will be able to shield $10.9 million from federal estate and gift taxes.

http://www.forbes.com/sites/ashleae...mits-the-10-9-million-tax-break/#2157a44e6a7c

The parents can give children assets, especially undervalued assets, before those assets appreciate (this can be up to $28000 per year per child and before triggering the gift tax).

The annual gift exclusion remains the same at $14,000.

http://www.forbes.com/sites/ashleae...mits-the-10-9-million-tax-break/#2157a44e6a7c

 

[Smyth]

The estate tax was repealed for a year a couple of years ago. Please show us where the capital gains tax returned to inherited assets that year.

The estate tax was repealed for one year, 2010. The Capital Gains tax did kick in for people who inherited estates. And, also notice, the repeal didn't stick. You can find where yourself.

 

[InTheLight]

The estate tax was repealed for one year, 2010. The Capital Gains tax did kick in for people who inherited estates. And, also notice, the repeal didn't stick. You can find where yourself.

I'd rather have you show us all where you get this information.

I did find this, which pertains to any future repeal of the estate tax. It shows that there will be a stepped-up basis in capital gains tax rates, meaning your claim that repealing the estate tax will kick in capital gains taxes is bunk.

The House of Representatives voted to kill the federal estate tax today 240-179, with 7 Democrats joining. That doesn’t mean that the estate tax is going away anytime soon, but anti-death tax advocates say it sets the stage for possible repeal in 2017. Significantly, the bill keeps in place a provision called “stepped up basis” that allows capital gains to escape taxation if passed to heirs.

http://www.forbes.com/sites/ashleae...es-240-179-to-repeal-estate-tax/#502ae9417f3e

 

[Smyth]

The House of Representatives voted to kill the federal estate tax today 240-179, with 7 Democrats joining. That doesn’t mean that the estate tax is going away anytime soon, but anti-death tax advocates say it sets the stage for possible repeal in 2017. Significantly, the bill keeps in place a provision called “stepped up basis” that allows capital gains to escape taxation if passed to heirs.

http://www.forbes.com/sites/ashleae...es-240-179-to-repeal-estate-tax/#502ae9417f3e

The one year the Estate Tax was repealed, inheritance was subject to the Capital Gains tax based on the increase in value from when grandma originally bought her house or stocks. Congress did provide a stepped up basis, essentially a $1.3 million capital gains exemption (which is worth a lot less than the current $10.9 Estate tax exemption for long-held assets, to heirs). The repeal of the Estate Tax didn't get rid of taxes on inheritance, it just introduced the nightmare figuring out the basis of inherited property. (It would also be grossly unfair not tax tax huge inherited capital gains, profit, when working people pay a lot of taxes.)

People who want to get rid of the "estate tax" don't know what they're talking about (Republicans often don't know what they're talking about, which is why the Republican party is so ineffective at promoting conservative ideals. Democrats may be generally dumber, but they do have smarter overlords.)

 

[InTheLight]

People who want to get rid of the "estate tax" don't know what they're talking about

Like you. When you say if the estate tax is repealed the capital gains tax will be reinstituted. I then show you a source that says the capital gains tax WILL NOT be reinstituted if the estate tax is repealed and you argue with me.

You may now have the last word.

 

[Smyth]

Like you. When you say if the estate tax is repealed the capital gains tax will be reinstituted. I then show you a source that says the capital gains tax WILL NOT be reinstituted if the estate tax is repealed and you argue with me.

You quoted an article saying "Significantly, the bill keeps in place a provision called “stepped up basis” that allows capital gains to escape taxation if passed to heirs." The article didn't say how much the basis was stepped up. I did tell you. You're welcome.

 

[InTheLight]

You quoted an article saying "Significantly, the bill keeps in place a provision called “stepped up basis” that allows capital gains to escape taxation if passed to heirs." The article didn't say how much the basis was stepped up. I did tell you. You're welcome.

<Sigh> By definition "stepped up basis" means the basis is the price of the security when you acquire it.

 

[carpro]

The one year the Estate Tax was repealed, inheritance was subject to the Capital Gains tax based on the increase in value from when grandma originally bought her house or stocks. Congress did provide a stepped up basis, essentially a $1.3 million capital gains exemption (which is worth a lot less than the current $10.9 Estate tax exemption for long-held assets, to heirs). The repeal of the Estate Tax didn't get rid of taxes on inheritance, it just introduced the nightmare figuring out the basis of inherited property. (It would also be grossly unfair not tax tax huge inherited capital gains, profit, when working people pay a lot of taxes.)

People who want to get rid of the "estate tax" don't know what they're talking about (Republicans often don't know what they're talking about, which is why the Republican party is so ineffective at promoting conservative ideals. Democrats may be generally dumber, but they do have smarter overlords.)

You are , very simply put, wrong.

ITL did proved you were wrong, but you foolishly refuse to admit it.

You're not worth bothering with.

 

[Smyth]

<Sigh> By definition "stepped up basis" means the basis is the price of the security when you acquire it.

Would you keep your word and go away! You are factually wrong. And, what makes that doubly bad is that it's on a basic fact that you could easily verify if you knew now to use a search engine.

 

[Smyth]

You are , very simply put, wrong.

ITL did proved you were wrong, but you foolishly refuse to admit it.

You're not worth bothering with.

When you're done celebrating your ignorance with ITL. Go get some self-respect.

 

[JohnDeereFan]

The Republican party often functions as the enemy of the middle-class. Their opposition to the Estate Tax (Death Tax) is an example. The neoconservative Christian news website One News Now illustrates this with an article that quotes someone saying "It's a burden on middle-class families and on small businesses, but not the super-rich”.

Excuse me. Last year the Estate Tax didn’t tax a penny of wealth below $5.45 million dollars. $10.9 million for married couples. I think that’s bit above what I would label middle-class. And, planning can easily get assets excluded from the Estate tax.

Without the estate tax, the government will have lost revenue to make up. If the estate tax is eliminated, then capital gains taxes will be applied. That means that the middle-class will be paying taxes, income taxes and capital gains taxes on estates that are now untaxed because middle-class inheritances are below the exclusion amount. If your mom leaves you her $100,000 house and you sell it, you’ll pay about $15,000 in taxes, verses zero now.

If Republicans want the Whitehouse, or if they just care about the middle-class, they need to stop being seen as the party of the rich and of war. And, Christians need to stop being suckers for the rich and for war.

Perhaps the government wouldn't need that revenue if it would just abide by the restrictions mandated upon it by the Constitution.

Why is the first solution you anti-Americans always run to more taxes and less liberty and never that it should follow the law

The idea of punishing someone simply because they've been financially successful is Unbiblical and Unarnerican.

 

[carpro]

<Sigh> By definition "stepped up basis" means the basis is the price of the security when you acquire it.

Bless your heart. You are always trying to educate a rock. This is surely the case this time. I've sat back since his first post to see if he was just ignorant or being intentionally desceptive. One thing is sure, he has a king size opinion. Not based on any facts in evidence that I can see, but he's sticking to it. I see more <sighs> in your future. Good luck.

 

[Smyth]

Perhaps the government wouldn't need that revenue if it would just abide by the restrictions mandated upon it by the Constitution.

I'm all for that. But, anyone who wants that should start with incremental steps to reducing government to constitutional limits. It's counter-productive, as I argued in the OP, for Republicans to push for the repeal of the Estate tax. That does nothing to reduce the scope of government, and instead would just exposes the middle-class to nightmarish-to-figure capital gains taxes on inherited estates, all the while driving people from the Republican party to perceive the party as not caring about the working class.

The idea of punishing someone simply because they've been financially successful is Unbiblical and Unarnerican.

Pavlov shouldn't have harassed a dog for his experiment. He could have just used Republicans and Democrats to demonstrated the mindless conditioned response. I say "Death tax" you say "punishing success" without a single thought needed for that response.

The estate tax doesn't exist to punish success. It exists as a reasonable substitute for capital gains tax on investment income for the federal government to have revenue.

 

[Smyth]

Obama being 'sneaky' in push to up death tax

The neoconservative Christian website One New Now, in supporting the Republican war against the middle-class, continues to run articles against the Estate Tax, the repeal of which will increased taxes on the middle-class and raise the complexity of tax return.

In the latest article, Obama is being accused of being sneaky to raise the "Death Tax". The article complains, the "Treasury Department recently released regulations to limit the ability of families to use valuation discounts to reduce their death tax liability."

"Valuation discounts" means FRAUD. It's lying about the value of assets, claiming they're worth less than they are actually worth, so there's less taxes on those assets. One New New is whining that the government is trying to make fraud harder.

If you inherent IBM stock, we can look at the stock price to see how much its worth. The market value is easily determined. But, what if it's something like land, where the market value is not so easily determined. Some lawyers have set up contrivances far more complex than the value of land to obfuscate the value of assets. The government is just trying to make it harder to lie about the value of assets -- good for them.

 

[carpro]

Obama being 'sneaky' in push to up death tax

The neoconservative Christian website One New Now, in supporting the Republican war against the middle-class, continues to run articles against the Estate Tax, the repeal of which will increased taxes on the middle-class and raise the complexity of tax return.

I

Prove the repeal will increase taxes on the middle class. so far all we've seen out of you is a shallow opinion, based on other even shallower opinions.

Let's see some proof.