Federal "Death Tax" Affects 5,500 Estates

[The Rabbi]

Actually inheritance tax is often double taxation. Sometimes triple. If I buy a stock and get dividends, those dividends are taxed to me as income. If I reinvest them in the stock and the price only matches inflation then when I die my estate gets taxed on the market value. So that is a second time.
The inheritance tax serves to discourage wealth building. It probably costs the country far more than it brings in.
But I wouldn't expect someone who believes that wealthy people exploit the "masses" to get rich to understand much of that.

 

[Care4all]

Actually inheritance tax is often double taxation. Sometimes triple. If I buy a stock and get dividends, those dividends are taxed to me as income. If I reinvest them in the stock and the price only matches inflation then when I die my estate gets taxed on the market value. So that is a second time.
The inheritance tax serves to discourage wealth building. It probably costs the country far more than it brings in.
But I wouldn't expect someone who believes that wealthy people exploit the "masses" to get rich to understand much of that.

hmmm, making up crap again Rabb? where did I say the rich exploits the masses?

 

[The Rabbi]

Actually inheritance tax is often double taxation. Sometimes triple. If I buy a stock and get dividends, those dividends are taxed to me as income. If I reinvest them in the stock and the price only matches inflation then when I die my estate gets taxed on the market value. So that is a second time.
The inheritance tax serves to discourage wealth building. It probably costs the country far more than it brings in.
But I wouldn't expect someone who believes that wealthy people exploit the "masses" to get rich to understand much of that.

hmmm, making up crap again Rabb? where did I say the rich exploits the masses?

You are so tiresome:
Post #50:

no, it does not say this at all....it explains that this wealth is wealth that the masses GAVE the person who massed it, through their working for them or producing for them or through buying their products and through laws (the gvt) made to protect them...

you can not have the wealthy, without the masses to make them wealthy.

Don't try to weasel out of it by saying the post doesn't use the word "exploit." It is implicit in your description of the "masses" giving wealthy people money. No one gave them money. They earned it.

 

[chanel]

Have we figured out yet if its 3.5 million or 1 million?

And investments are taxed. Dividends and interest are taxed. Property taxes are paid for real estate. Can investors write off losses? You can't have it both ways.

 

[Polk]

Have we figured out yet if its 3.5 million or 1 million?

Under the law as currently written
2009: 3.5 million
2010: None
2011 and beyond: 1 million

Under the Obama proposal
2009: 3.5 million
2010: 3.5 million
2011 and beyond: 3.5 million

 

[Toro]

The death tax doesn't go into the OASI Ponzi scheme in the first place.

If it's such the small part, what's the point in it anyways, other than being a little stab at the vindictive redistributive "justice" mindset?

The original point of the estate tax was to lessen dynastic aristocracies in the United States.

 

[The Rabbi]

The death tax doesn't go into the OASI Ponzi scheme in the first place.

If it's such the small part, what's the point in it anyways, other than being a little stab at the vindictive redistributive "justice" mindset?

The original point of the estate tax was to lessen dynastic aristocracies in the United States.

Maybe. But that is not a legitimate goal of taxation. Nor is it necessary. How many Rhinelanders do you find on the Fortune 400? And yet the family was one of the early aristocrats of New York.
Death should not be a taxable event.

 

[jillian]

My recollection is that this monster comes back with a vengeance in the next few years.
It is an utterly stupid tax based on class envy more than anything else. I would bet that the tax costs far more in collection and inefficiences than it generates.

Actually, the INHERITANCE tax was something your beloved founders wanted.

I think the point at which people start to pay estate taxes, is not inappropriate or overly burdensome. And the people who keep screaming about the estate tax are something like 7 families including the Forbes and Hilton families. I'm not going to feel sorry for Paris Hilton if she has to pay a few dollars in taxes.

And if you look at the OP, it's only 2.2 out of every 1,000 estates that isn't exempt.

I'm ok with that.

YOu talking about the founding fathers of America? They wanted an inheritance tax? If this is what youre saying. youll have to explain that to me.

Wouldn't be referring to any other founding fathers. An interesting analysis of the subject... just food for thought.

Silver Spooning | Baltimore City Paper

 

[Oddball]

The death tax doesn't go into the OASI Ponzi scheme in the first place.

If it's such the small part, what's the point in it anyways, other than being a little stab at the vindictive redistributive "justice" mindset?

The original point of the estate tax was to lessen dynastic aristocracies in the United States.

Because if it's one thing the Hiltons, Mellons, Kennedys, Rockefellers, et al hate, it's competition.

 

[Old Rocks]

Actually inheritance tax is often double taxation. Sometimes triple. If I buy a stock and get dividends, those dividends are taxed to me as income. If I reinvest them in the stock and the price only matches inflation then when I die my estate gets taxed on the market value. So that is a second time.
The inheritance tax serves to discourage wealth building. It probably costs the country far more than it brings in.
But I wouldn't expect someone who believes that wealthy people exploit the "masses" to get rich to understand much of that.

Not at all. That is first time taxation. The person getting the inheritance did not have that money before he or she inherited it. So that tax is the first time it is taxed for them.

To say otherwise would be to count the corperate taxes that the company I work for as taxes coming out of my paycheck.

 

[Old Rocks]

The death tax doesn't go into the OASI Ponzi scheme in the first place.

If it's such the small part, what's the point in it anyways, other than being a little stab at the vindictive redistributive "justice" mindset?

The original point of the estate tax was to lessen dynastic aristocracies in the United States.

Maybe. But that is not a legitimate goal of taxation. Nor is it necessary. How many Rhinelanders do you find on the Fortune 400? And yet the family was one of the early aristocrats of New York.
Death should not be a taxable event.

Death is not a taxable event. The person that is dead is not paying the tax. The person that receives the inheritance is paying the tax out of that inheritance, just as I pay a tax out of my paycheck and profit sharing.

 

[The Rabbi]

Actually inheritance tax is often double taxation. Sometimes triple. If I buy a stock and get dividends, those dividends are taxed to me as income. If I reinvest them in the stock and the price only matches inflation then when I die my estate gets taxed on the market value. So that is a second time.
The inheritance tax serves to discourage wealth building. It probably costs the country far more than it brings in.
But I wouldn't expect someone who believes that wealthy people exploit the "masses" to get rich to understand much of that.

Not at all. That is first time taxation. The person getting the inheritance did not have that money before he or she inherited it. So that tax is the first time it is taxed for them.

To say otherwise would be to count the corperate taxes that the company I work for as taxes coming out of my paycheck.

Wow are you uninformed.
The tax is paid by the estate. There is a special tax form to be filled in by the administrator of the estate before any money is disbursed to the heirs.
On your paycheck, whatever is paid to you is deducted from corporate earnings. Ditto for your health care premiums, which is another topic.