The antiquated estate tax

Why does America insist on robbing rightful inheritances?

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America is about to do something to families that not even Russia or China do: pillage their inheritances.

The so-called estate tax – more pejoratively referred to as the “death tax” – is set to skyrocket Jan. 1 – from 35 percent to 55. And on a whole lot more families, as well: Currently, the tax applies to estates of $5 million or more; next year, it will extend to estates of $1 million or more.

The American Farm Bureau reports that means the tax will cover 97 percent of family farms.

The estate tax is a relic of class envy that not even Russia or China hold onto anymore.

It punishes families who have risked their capital and plied their sweat and tears to build businesses and work the land. And it is just another disincentive – albeit a huge one – for people to invest and grow businesses.

The estate tax often forces families to liquidate businesses and farms, robbing generations of families from carrying on
beloved enterprises they’ve grown up working for and nurturing.

It’s quite simply un-American at any level, and should rightfully be completely done away with. Yet this country is actually looking at increasing it.

How discouraging, when you can point to communist countries that have more family-friendly policies.

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dichotomy
34691
Points
dichotomy 11/25/12 - 11:54 pm
15
2
The death tax is the most

The death tax is the most hated tax in this country. It just isn't right. A million dollars is not a great amount of money if you happen to own a small business and a few pieces of machinery. But now instead of being able to leave it to your son or daughter so that they might have a way to earn a living, they will more than likely have to sell the business, for less that what it is worth, and take over half of the proceeds and give it to the government. And it is an automatic disaster for a family farm. No farmer has the cash available to pay a 55% inheritance tax on the value of the farm and equipment. This tax needs to be permanently abolished. It just isn't right to tax something that has already been taxed and paid for once and the owner wants to leave to his family when he dies. It is a cruel tax that almost everyone considers unfair and unjust.

carcraft
27258
Points
carcraft 11/26/12 - 07:28 am
8
1
Dichotomy, you are correct

Dichotomy, you are correct and spot on!

Techfan
6461
Points
Techfan 11/26/12 - 08:29 am
5
12
10 days after Faux ran the story, time off for the holiday?

10 days after Faux ran the story, time off for the holiday? As I noted in my comment from yesterday, the AC editorials always seem to be a rehash and merely a rewording of stories from other right wing sites. I know a previous editor had a slight plagiarism problem, but do you get a pass by moving the words around?

"

Ironically, many nations historically more concerned with class and wealth -- namely Russia and China -- have since abandoned their estate taxes."
"The estate tax is a relic of class envy that not even Russia or China hold onto anymore."
"America is about to do something to families that not even Russia or China do: pillage their inheritances"

"But according to the American Farm Bureau, up to 97 percent of American farms and ranches will be subject to an estate tax where the exemption is set at $1 million."
"The American Farm Bureau reports that means the tax will cover 97 percent of family farms."

"A pending estate tax could become a disincentive to invest in an otherwise viable business, forcing older people to liquidate or shift resources out of an ongoing business and into a trust or tax-free investment."
"The estate tax often forces families to liquidate businesses and farms, robbing generations of families from carrying on
beloved enterprises they’ve grown up working for and nurturing."

http://www.foxnews.com/politics/2012/11/16/ranchers-farmers-brace-for-de...

Riverman1
87471
Points
Riverman1 11/26/12 - 08:44 am
12
1
That's a huge tax on small

That's a huge tax on small farms and businesses where the children often grow up helping out and working in the business or farm. Does anyone watch the reality shows about people living in the Alaska wild and building their family ranches in the wild dangerous country with the entire family sacrificing and working hard? With a lifetime of work they may have a successful and valuable ranch, but does government realize their sacrifices? When the old man-owner dies could anyone with a clear conscious make his children pay large sums in taxes ? I would rate this confiscation of any of THEIR property as the kind of taxation that has inspired revolutions.

seenitB4
91139
Points
seenitB4 11/26/12 - 08:57 am
10
0
We wonder why folks just give up....

Do you have any idea how fast a million dollar estate can disappear.....just think now....land is worth say $500,000....the heavy machines on the farm are worth maybe $350,000.......crops-trees---animals ----barns buildings......another $500,000.....BINGO GONE in a flash.....
They need to do away with this tax..it is INSANE!

nofanofobama
6856
Points
nofanofobama 11/26/12 - 09:00 am
8
2
the govt just wants tax

the govt just wants tax dollars...common sense and fairness has never been taken in consideration.

seenitB4
91139
Points
seenitB4 11/26/12 - 09:03 am
10
0
If you don't have a clue

http://www.agweb.com/harvesting-equipment/

Some pics of heavy equip that make a farm produce......the gov. doesn't give this equip to the farmers...yaknow like cell phones !!

justthefacts
22970
Points
justthefacts 11/26/12 - 09:04 am
11
2
Heck

There may come a time when the gov't just takes the land and distributes it as they please.

Humble Angela
41338
Points
Humble Angela 11/26/12 - 09:09 am
9
3
So Techfan....you actually
Unpublished

So Techfan....you actually support a tax on someone dying? Is that what you are saying here, or do you just take any side that is in favor of killing a small business?

Techfan
6461
Points
Techfan 11/26/12 - 09:11 am
4
11
The estate exists because

The estate exists because many of the very large estates have large amounts of unrealized capital gains. This means untold billions of dollars grow and grow, but never does the family pay one cent in taxes on it. A reasonable estate tax level insures that these gains will at least be taxed at some point. In 2009, when the threshold was $2 million:"About 2.4 million people died in that year; of those, only 1 in 73 generated an estate tax return and only 1 in 166 had to pay any es-tate tax." Tax Policy Center. We need a reasonable estate tax as well as reform that prevents overseas tax shelters.

Humble Angela
41338
Points
Humble Angela 11/26/12 - 09:14 am
11
2
If it's a "reasonable" tax,
Unpublished

If it's a "reasonable" tax, then why would it put so may small family businesses out of business? The "uber wealthy" that you seem to have such disdane for, have no problem with the tax.....it only hurts the small business.

Then you defend it by saying it's only a small minority that have to pay the estate tax......again picking on minorities....what happened to equal protection under the law?

Humble Angela
41338
Points
Humble Angela 11/26/12 - 09:16 am
11
2
We "need" an estate tax?
Unpublished

We "need" an estate tax? Balderdash. A "fair tax" would solve the "problem" you mentioned...why not support THAT? Would it be because it would spread the tax burdon to EVERYONE, and not just the wealthy.....liberals seem to want to do?

Techfan
6461
Points
Techfan 11/26/12 - 09:21 am
6
8
You mean small businesses

You mean small businesses like Lockheed, Raytheon and General Electric that have gotten government small business contracts?

Humble Angela
41338
Points
Humble Angela 11/26/12 - 09:23 am
9
3
So you are saying that
Unpublished

So you are saying that Lockheed, Raytheon and General Electric have been put out of business by the estate tax, or are you implying that they wouldnt' pay any taxes on a consumption tax?

Techfan
6461
Points
Techfan 11/26/12 - 09:24 am
6
9
The "Fair Tax" is a scam that

The "Fair Tax" is a scam that would shift wealth to the top even faster than the system we have. You immediately raise the cost of everything (including labor) 30%. The extremely poor come out ok, maybe even a little better than now, the extremely wealthy make out like bandits, and the hammer falls on the middle class. What else is new?

Techfan
6461
Points
Techfan 11/26/12 - 09:27 am
5
8
The way I read it, businesses

The way I read it, businesses pay zilch under the "Fair" tax scam.

Humble Angela
41338
Points
Humble Angela 11/26/12 - 09:27 am
8
4
And you base this on what?
Unpublished

And you base this on what? Certainly not the details of the Fair Tax plan where it explains exactly how what you claim will happen, will not happen.

Humble Angela
41338
Points
Humble Angela 11/26/12 - 09:32 am
9
4
So the people who work in
Unpublished

So the people who work in businesses never buy any goods? An "uber rich" CEO just goes his whole life and never spends any of his money for himself.....I was unaware of that... (end sarcasm font)

justthefacts
22970
Points
justthefacts 11/26/12 - 09:31 am
8
3
Fair Tax?

Ha, Georgia Tech has a better chance of beating UGA than that ever passing.

Humble Angela
41338
Points
Humble Angela 11/26/12 - 09:33 am
8
2
JTF....you are correct about
Unpublished

JTF....you are correct about that......because there are too many people who pay no income tax that vote, and too many people like Techfan who don't understand how the tax would work......or maybe they realize they would have to pay their "fair share" and that's why they oppose it and make up scare tactics about it.

justthefacts
22970
Points
justthefacts 11/26/12 - 09:36 am
8
3
And

True, but mostly because the gov't would lose their ability to buy votes and manipulate the poor as they please.

Humble Angela
41338
Points
Humble Angela 11/26/12 - 09:39 am
9
3
That too.
Unpublished

That too. There are those who call the Fair Tax a scam, and don't realize that the current system is a far bigger scam.

harley_52
23972
Points
harley_52 11/26/12 - 09:55 am
6
3
"The way I read it...

....businesses pay zilch under the "Fair" tax scam."

Not surprisingly, you read it incorrectly.

nofanofobama
6856
Points
nofanofobama 11/26/12 - 09:56 am
11
1
tech-business do not pay

tech-business do not pay taxes ..its incorporated into the cost of a product they make...just like labor, materials, transportation, packaging, etc...cost accounting 101

harley_52
23972
Points
harley_52 11/26/12 - 09:58 am
7
3
"....and too many people like Techfan...

....who don't understand how the tax would work."

I think he knows how it works. Not that it matters to the case he's presenting.

wayne2410
1239
Points
wayne2410 11/26/12 - 10:07 am
0
1
I got beat to it. Techs claim
Unpublished

I got beat to it. Techs claim that costs would go up because of a fair tax are wrong because those costs are embedded already, as someone already pointed out. Funny how democrats flat out refuse to consider a tax system that truly would be fair and much more simple and less costly to implement. I don't think they really have the best interest of everyone in mind.

JRC2024
9419
Points
JRC2024 11/26/12 - 10:28 am
3
0
If a small business owner has

If a small business owner has an accountant he or she would get a monthly statement of the profit or loss and pay out additional money during the year to eliminate the income tax on the business. The tax burden would be on the individual and not the business. Why would anyone want to create a profit in a business and pay the tax, then pay out the profit and then the tax again.

Little Lamb
47219
Points
Little Lamb 11/26/12 - 11:35 am
4
1
Business Tax

Techfan posted:

The way I read it, businesses pay zilch under the "Fair" tax scam.

Businesses pay zilch under current tax law. Businesses merely collect the taxes from their customers and send it in to the government.

KSL
135473
Points
KSL 11/26/12 - 11:55 am
3
4
By way of explanation direct

By way of explanation direct from the source: Techfan has posted in the past that he is a nurse. And that he didn't go to Tech, just had relatives that did go to Tech.

KSL
135473
Points
KSL 11/26/12 - 11:57 am
5
4
I assume it is okay to pass

I assume it is okay to pass along personal information about a poster that the poster himself posted. Or are we to be punished for having a good memory?

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