The inheritance Tax

Discussion in 'Education' started by mnbasketball, Mar 5, 2011.

  1. mnbasketball
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    mnbasketball Member

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    Did you know that it's close to 60% of wealth passed on has never been taxed?
    Did you know that 18 of the 25 richest families have spent 500 million trying to get rid of this tax that few people ever come into play on?

    well you read it and notice one name at the top.
    These include:
    • The owners of the first-and-third largest privately held companies in the United States
    (conglomerate Koch Industries Inc. and Mars Inc., maker of M&Ms); 7
    • The family that owns more than 40 percent of the stock in the world’s largest retailer,
    Wal-Mart;8
    • The owner of the company that makes Gallo wine and the Dorrance family, which holds
    more than a 40 percent interest in the Campbell Soup Company;9 and
    • The wealthiest family in the state of Alabama.


    Members of a handful of super-wealthy families have quietly helped finance and coordinate a
    massive campaign to repeal the estate tax.
    These families – the members of which own the first and third largest privately held companies
    in the United States and hold about a 40 percent share in the world’s largest retailer, Wal-Mart –
    stand to save a whopping $71.6 billion if their bid succeeds.
    They have relied on their fortunes, the resources of their companies and their business
    connections to marshal a massive anti-estate tax juggernaut that has reported nearly a half-billion
    dollars in lobbying expenditures ($490.3 million) since 1998.
    The families also have helped finance outside groups that have spent millions on fear-mongering
    ad campaigns intended to sway public opinion against the estate tax. These ads have shamelessly
    retailed myths that the estate tax is responsible for wrecking small businesses and family farms,
    and that regular Americans should fear a crushing tax bill when their loved ones die.
    In fact, only about one-quarter of one percent of all estates will owe any estate taxes in 2006.
    And the American Farm Bureau, a member of the anti-estate tax coalition, was unable in 2001 to
    cite a single example of a family being forced to sell its farm because of estate tax liability – and
    that was back when the exemption level was only a fraction of what it is today.
     
  2. DiveCon
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    do you realize that all that money was taxed as INCOME when it WAS income?

    stop being jealous of other peoples success
     
  3. Care4all
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    Care4all Warrior Princess Supporting Member

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    like those saying a 25k starting salary for a teacher in wisconsin is too much money, is not some sort of envy? or the 50k AVERAGE salary for those teachers having 20 years time in?

    slightly hypocritical imo dive....
     
  4. mnbasketball
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    mnbasketball Member

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    you maybe ought to stop being so dumb and blind to the truth, drive con.
     
    Last edited: Mar 5, 2011
  5. DiveCon
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    its not the salary at issue in WI
    its the other things
     
  6. DiveCon
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    you need to learn how to read
    there is no "r" in my handle
     
  7. mnbasketball
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    mnbasketball Member

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    this really gets me, ordinary people join together to try and better themselfs and they are called every name in the book by you people.

    yet when those at the top don't bother you bit as they use their money to enhance what they want.

    Although some of the information I've relied upon to create this section on executives' vs. workers' pay is a few years old now, the AFL/CIO provides up-to-date information on CEO salaries at their Web site. There, you can learn that the median compensation for CEO's in all industries as of early 2010 is $3.9 million; it's $10.6 million for the companies listed in Standard and Poor's 500, and $19.8 million for the companies listed in the Dow-Jones Industrial Average. Since the median worker's pay is about $36,000, then you can quickly calculate that CEOs in general make 100 times as much as the workers, that CEO's of S&P 500 firms make almost 300 times as much, and that CEOs at the Dow-Jones companies make 550 times as much.

    If you wonder how such a large gap could develop, the proximate, or most immediate, factor involves the way in which CEOs now are able to rig things so that the board of directors, which they help select -- and which includes some fellow CEOs on whose boards they sit -- gives them the pay they want. The trick is in hiring outside experts, called "compensation consultants," who give the process a thin veneer of economic respectability.

    The process has been explained in detail by a retired CEO of DuPont, Edgar S. Woolard, Jr., who is now chair of the New York Stock Exchange's executive compensation committee. His experience suggests that he knows whereof he speaks, and he speaks because he's concerned that corporate leaders are losing respect in the public mind. He says that the business page chatter about CEO salaries being set by the competition for their services in the executive labor market is "bull." As to the claim that CEOs deserve ever higher salaries because they "create wealth," he describes that rationale as a "joke," says the New York Times (Morgenson, 2005, Section 3, p. 1).

    Here's how it works, according to Woolard:

    The compensation committee [of the board of directors] talks to an outside consultant who has surveys you could drive a truck through and pay anything you want to pay, to be perfectly honest. The outside consultant talks to the human resources vice president, who talks to the CEO. The CEO says what he'd like to receive. It gets to the human resources person who tells the outside consultant. And it pretty well works out that the CEO gets what he's implied he thinks he deserves, so he will be respected by his peers. (Morgenson, 2005.)

    The board of directors buys into what the CEO asks for because the outside consultant is an "expert" on such matters. Furthermore, handing out only modest salary increases might give the wrong impression about how highly the board values the CEO. And if someone on the board should object, there are the three or four CEOs from other companies who will make sure it happens. It is a process with a built-in escalator.
     
  8. mnbasketball
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    mnbasketball Member

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    its not the salary at issue in WI
    its the other things

    and what would that be?
     
  9. mnbasketball
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    mnbasketball Member

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    Pension and health ins is part of their salary, it was gotten by giving up pay in lieu of getting these things.
     
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