The tax/revenue plan of the republicans is undeniably senseless. There's no question. If the reason for the inheritance tax is, "we need more revenue", then that's at least a reasonable argument. The inheritors don't deserve the money to me is not.
They will cut funding for education, and everything else. Talk about redistribution of money. They aren't going to be satisfied until America is turned into Mexico where there is nothing but gated communities with armed guards, and then everywhere else ghetto, with corporations polluting drinking water and dumping toxic waste in streams.
Here is the valid argument for the estate tax, one of the few taxes I see justification for: The vast majority of wealth in estates is un-taxed capital gains, and by that I mean like 97%. Those who inherit money inherit it at the present market value, called a step up in basis. So the Coke stoke Grandpa bought for 60 cents in 1940 and worth $42 has never been taxed. When Grandson sells the stock there is no capital gains tax due. There has been no gain. Compared to the step up in basis, the estate tax is nothing. Remember less than 1% of estates ever owe any estate tax, there are numerous ways to estate plan to minimize the risk, and the average estate is taxed at an effective rate of under 15%. This tax is an effective and efficient way to essentially collect capital gains taxes. I have seen proposals to eliminate the step up in basis along with the estate tax, but nobody wants that either.
Do you have a source for this. I can't imagine that is true. That would mean 97% of your net worth is tied up in assets that have a basis of 3% of the total value of those assets. That doesn't make sense. I must be misunderstanding you. I have no problem with stepping up at death and being taxed on it. Maybe I misunderstand the estate tax but that's not what it is from what I know. If that's truly what you're looking to tax, then tax that. Don't tax entire estates and say, well it was probably all untaxed long term gains anyway. Additionally, why would you pay more than the long term gain rate when your basis is stepped up. It doesn't matter how many or few estates are taxed. What's fair is fair. I agree that stepping up the basis and owing tax is fair, but if that's your argument, then you should support doing just that. Why support a different tax that will treat people disproportionately.
wealth thats passed down during the not great times of this country and its probably true of some of the estate tax. But ive never agreed with the estate tax.
i dont agree with the tax, its just what I have heard from different people. But follow my logic, most of the wealth in this country whites have it and most of that wealth in the south has the appearance of coming from industry that depended on slave labor. Most minorities have no inheritance to tax at that dollar value . So you are taxing a small segment of the population on wealth that was passed down.
Im getting to that and answering Mobius' and Reds' question. I know that is not going directly to minorities and black people, but in a sense it is. Its being redistributed through the programs that that money funds, healthcare, medicaid, food assistance. I have heard this theory as late as last week on Fox news and it was a black guy who pushed this idea. And most people view those programs as handouts, well conservatives do and they believe the majority of those who benefit from those services are funded at least in some form by the inheritance tax along with their income and capital gains.
