I notice that they are quick to ensure that this gets thrown in. Recall that, presently, the "death tax" (i.e. estate tax) applies to one's estate at the rate of 40%. However, the first $5.5m or so is exempted. So, unless you have $5.5m to leave to someone, this tax will never touch you. It's interesting how they are so vague with so many other parts of this "reform" plan, but so explicit about ensuring that those poor downtrodden millionaire heirs and heiresses don't have to pay taxes on that money that they won via the sperm lottery.REPEALS THE DEATH TAX AND ALTERNATIVE MINIMUM TAX (AMT)
The framework repeals the unfair Death Tax and substantially simplifies the tax code by repealing the existing individual AMT, which requires taxpayers to do their taxes twice.
Also, the Alternative Minimum Tax (AMT) was put in place by Ronald Reagan to ensure that rich people (like Donald Trump) can't itemize their way to a $0.00 tax bill. Again, note how explicit this "reform" plan is about repealing that.
In a nutshell, this plank of their plan ensures that the extremely wealthy can take advantage of loopholes and never pay taxes; then, when they die, they can pass their wealth along to their children tax free.
Don't forget, if you spent all day nailing shingles to a roof, your wages for the first hour and a half of your ten hour day went to the federal government; this plan doesn't help you. Instead, it helps the guy who owns the shingle company and the lumber company avoid paying anywhere near the level of taxes you pay.
Food for thought.
Yep
ReplyDeleteI think probably the ultra rich probably feel this way .... example : someone in my family died with a million dollars in their savings ( stocks, bonds etc .) , currently 1 million dollars is not enough money to be taxed with the " death tax " .... BUT let's say it was .... do I think that it's fair that my relative saved and invested their earnings just so the government can take a huge chunk ? NO ! That's certainly not fair . I'm sure the " ultra rich " - the ones with estates more than 5 million ( or 5.5 whatever it is ) feel the same way about the situation . I'm sure they feel the tax is not fair also . However , I think the ultra rich find ways to circumvent the tax anyway so I'm wondering why it matters , unless they all are tired of shifting their assets all around to avoid the tax .
ReplyDeleteNow , this most probably does not effect me or my family at all since we won't ever have estates of 5 million or more .... I still can understand the desire to have it removed .
I mean, you never know maybe our daughter will have that much , she's got a really good ( kinda maybe ) start saving 25% in her 401K . Lol !!! But that's a whole other subject !
The desire to have it removed is to ensure that people can get enormous inheritances tax free. If you are the same "Anonymous" who continually comments on previous posts regarding people on welfare, I can't help but notice your disconnect: Why do you defend heirs' inheritances so vehemently and at the same time fault people who are having a hard time and need welfare?
ReplyDeleteI suspect that as a healthcare worker you often see those on the welfare rolls and get annoyed by their lack of manners, appreciation, etc. I know I used to feel that way when I taught.
As to your concerns over your dead relative, perhaps you can examine who the concern is for. Is it for the person who saved all that money, who is dead? Money doesn't do much good in the next life, from what I hear in church. For whom do you concern yourself? The saver who worked her entire life, or the heir who has done nothing for that money?
And further, what about the uses that our society has for the lost tax revenue. What sacred cow are YOU willing to give up so that a wealthy heir can get his/her tax-free inheritance?
Idk I just feel that if I had worked hard , gone to school longer , invested wisely , I would want my heirs to inherit the money, if any was left instead of the government through taxes . Why should my hard earned money go to the government ? Should the money go to the government just because my heirs " didn't work for it "? I get what you are trying to say but it doesn't make much sense to me.
ReplyDeleteAs far as " giving up " something so the wealthy can avoid the death tax? I'd rather do that than give something up for someone who isn't working hard or isn't even working to their full god given potential .... I think that's far far worse .... just my opinion ...
Just for the record, there are multiple ways I am told that the rich avoid the " death tax" . And they do . I'm thinking they'd rather have it removed so that they can continue to invest it rather than have to do that in order to make more money . Of course idk for sure as I don't have 5 million .
ReplyDeleteI get where you are coming from and it does seem the rich get richer and we the middle class seem to carry everyone . Although I do know many rich people do actually give back to the poor and their community. I'm sure there are a fair share that are greedy . But I can't blame or hold a grudge against someone who went to school , became successful and made money .... or even the entrepreneur who came up with even a silly idea and made a bunch of $$. Lucky SOB! But I can however , be upset and blame people who do not try and live off of the system for generations . I'm not talking about unfortunate individuals who through no fault of their own cannot get ahead or make something of themselves... that's what makes America great is we take care of those people , better than other countries for sure ... we try at least ! But somewhere the line has to be drawn and people have to be accountable for their welfare if they are able. Welfare wasn't meant to be a generational thing .
Btw , I didn't vote for Trump , if you are thinking that .