Inheritance Tax Should be Abolished

[NotSoonEnough]

Quote:

Originally Posted by Dawg52 Say what? :confused:

Well, obviously, with yer golf, country club, and yer high falutin' friends... Oh my!

[Freein05]

It is amazing to me how many people worry about the death tax when in reality very few people are affected by it. Look at Buffet he stated he is not leaving his kids anything. Let them work to earn it. Paris Hilton is a good example for increasing the death tax. We all would be better off if she had not inhearted money. In fact she is the poster child for increasing the death tax.

[JustCurious]

Quote:

Originally Posted by RetireeRobert The inheritance tax is set to go to $-0- in 2010. For one year. But then in 2011 it comes back, with rate of 55% on taxable estates, under current law. Why should families who spent lifetimes earning, sweating, slaving, saving---and paying income taxes all along--have the government confiscate 55% of their wealth when the parents die? I believe this tax should be permanently abolished. It is punative and serves no good purpose.

You left out an important fact which dilutes your point....the average family simply doesn't have to worry about the estate tax because of the estate tax exemption, which is currently $2 million dollars. Only estates above that exemption amount incur estate taxes.

Secondly, I think the estate tax on very wealthy people serves an important purpose...it prevents wealthy families from growing their wealth to infinity and making their offspring very lazy and unproductive, and without the estate tax, America would become a meritocracy, the very thing that our ancestors ran away from. Just ask the two of the wealthiest Americans...Warren Buffett and Bill Gates...

Dozens of the Wealthy Join to Fight Estate Tax Repeal

[youbet]

Quote:

Originally Posted by nun Why do the rich always whine? Whenever there is a transfer of wealth the Government takes a part of it. Get over it and be thankful that you have enough to worry about this tax.

1. I don't consider myself "rich." But, according to Firecalc, if the markets are favorable during my retirement years, there is the possibility that I'll croak with enough of a portfolio that my estate could be taxed. My final estate could also be zero, again depending on the markets and the economy over the next few decades. I suspect lots of folks on this board are in similar circumstances.

2. I'm not whining about paying the tax. I'm whining because they make it so wishy-washy. Your estate might have to pay.....BUT..... if you pay to have the appropriate trusts and other tools put into place, you may just wiggle out of it.

I say, pay or don't pay. But let's try to get rid of all the wiggle room. I just find taxes that can be avoided buy applying paper shuffling very annoying.

If all attorneys were as intelligent, ethical, good looking and personable as Martha, that would be another story. I'd enjoy spending time and money with them.

youbet (trying to dig out of a hole)

[Dawg52]

Quote:

Originally Posted by NotSoonEnough Well, obviously, with yer golf, country club, and yer high falutin' friends... Oh my!

Golf equates to being rich huh? And you know my falutin friends? Well good for you. You got me.

[FIRE'd@51]

I find it amusing that most proponents of the estate tax want the exemption set just high enough that their estate won't have to pay it.

[W2R]

Also, $2,000,000 doesn't go as far as it used to. Look at what people on this board think is necessary for a beginning retirement nestegg... many wouldn't dream of it without a nestegg that size.

With any luck, and a well selected SWR, one's estate may be the same size or larger at one's demise.

[W2R]

Quote:

Originally Posted by Dawg52 Golf equates to being rich huh? And you know my falutin friends? Well good for you. You got me.

Better watch out with all that falutin around! Next thing you know, you'll get caught at it and your falutin days will be far behind you.

[nun]

Quote:

Originally Posted by Dawg52 Say what? :confused:

What I'm saying is that there are a lot of folks who would love to have enough money to worry about that tax. A big tax bill usually means that you have a lot of income, gains or a big estate.

[NotSoonEnough]

Quote:

Originally Posted by Dawg52 Golf equates to being rich huh? And you know my falutin friends? Well good for you. You got me.

Well, uh, argh!

I don't want to be accusing anyone of anything, but I honestly believe that regular (daily) golfers make a significant contribution to society. I mean, without them, what would the greenskeepers do all day?

[Danny]

Quote:

Originally Posted by RetireeRobert The inheritance tax is set to go to $-0- in 2010. For one year. But then in 2011 it comes back, with rate of 55% on taxable estates, under current law. Why should families who spent lifetimes earning, sweating, slaving, saving---and paying income taxes all along--have the government confiscate 55% of their wealth when the parents die? I believe this tax should be permanently abolished. It is punative and serves no good purpose.

[maddythebeagle]

I think there should be a tax on trolling thread topics.....

[youbet]

Quote:

Originally Posted by FIRE'd@51 I find it amusing that most proponents of the estate tax want the exemption set just high enough that their estate won't have to pay it.

No different than wanting the next income tax bracket to be just over your income!

[ERD50]

Quote:

Originally Posted by Freein05 Let them work to earn it. Paris Hilton is a good example for increasing the death tax. We all would be better off if she had not inhearted money. In fact she is the poster child for increasing the death tax.

This is a good example of how poorly these taxes accomplish what people expect.

First, the Hiltons probably made some lawyers and planners wealthier to find ways to circumvent the taxes. Second, even if the rate was 90%, I suspect that Paris could still afford her current lifestyle. So it didn't do anything that you think it might do. If you want to 'Let them work to earn it', then we would need some maximum $ figure per individual, or something. Then, exemptions for special needs, which would be used as 'loopholes' by people who can hire expensive lawyers - back to square one!

Quote:

Look at Buffet he stated he is not leaving his kids anything.

You might want to check your facts. There was a thread on Buffet and estate tax a while ago. -ERD50

[Gumby]

..

[REWahoo]

That would take "use it or lose it" to entirely new heights...

[CyclingInvestor]

That would certainly make annuities a much better value. Even I might buy one.

[ERD50]

You are welcome to your belief, but I'd bet it wouldn't work out so well.

I bet there would be a lot of death-bed marriage ceremonies, or other ways around any large $ amount tax. Just like there is today.

I'm OK with some form of wealth re-distribution, but not when some can buy their way out of it. That turns the whole thing upside-down.

I say tax a little at a time while they are alive. If the $ amount is not so large at any one time, it is not worth it to pay to have someone help you circumvent it.

I'm just trying to be practical. We need to collect taxes - do it simply and effectively.


-ERD50

[Rustic23]

Is the estate tax indexed? If not, most on this board will pay it.

[Freein05]

This is what Warren Buffet said in November of 2007:

"Dynastic wealth, the enemy of a meritocracy, is on the rise. Equality of opportunity has been on the decline," Buffett said. "A progressive and meaningful estate tax is needed to curb the movement of a democracy toward plutocracy."

Buffett backs estate tax, decries wealth gap | News | Reuters