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Care to know why we ship jobs to China?

With all the focus on eliminating the Bush tax cuts and spurring the economy, President Obama and Congressional Democrats are tripping over themselves touting their small business tax breaks this election season. What they’re not mentioning is an automatic tax increase that will hit family-owned businesses hard, starting on New Year’s Day.
Unless Congress and President Obama act, the inheritance or “death tax” will automatically revert to its pre-2001 level: 55 percent of the value of one’s estate after a $1 million deduction. That tax alone often breaks a small business if its owner suddenly dies.
Supporters say the estate tax affects only the wealthy, but in reality, it also hits family-owned businesses and the people who work for them.

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mustbeGRACE

Asked by mustbeGRACE at 12:04 PM on Sep. 14, 2010 in Politics & Current Events

Level 25 (23,140 Credits)
Answers (14)
  • In fact, researchers at the Heritage Foundation estimate that 300,000 jobs are lost each year to the death tax because families have to sell the farm, manufacturing plant or store just to pay state and federal estate taxes.
    Many who support “death to the death tax” believe its purpose is misunderstood. The wealth in family and privately-owned business and farms is not in diamonds, gold, private jets, fancy island estates and high interest paying bonds. It is in equipment, machinery, inventory, factories, stores and buildings that provide jobs — American jobs.
    By the time the owner of a family business dies, he or she has already paid a multitude of taxes: income taxes, business taxes, license fees, excise taxes, Social Security taxes and real estate taxes; they paid sales taxes on everything they bought and paid personal property taxes on everything they owned.
    mustbeGRACE

    Comment by mustbeGRACE (original poster) at 12:05 PM on Sep. 14, 2010

  • Most of what’s left goes to pay wages and benefits to employees, who pay taxes all over again — Social Security taxes, income taxes, sales taxes, excise taxes, license fees, and property taxes. If, despite all that, the business has anything left when the owner dies, Uncle Sam lurks at death’s door — literally — and tries to take most of that, too.


    That's why!


    We still lose.


    Because if we don't want to be taxed to death. we'll still pay for everybody's public assistance, in whatever form!


    Talk about kicking people's azz for being successful!

    mustbeGRACE

    Comment by mustbeGRACE (original poster) at 12:08 PM on Sep. 14, 2010

  • It is crazy the government thinks they are entitled to over half of what someone else worked for. Guess we know where the entitled in our country get this attitude from. We have a trust but I do feel the Congress with find a way to screw with that. Anyway to screw with the successful in our country.
    tabekat

    Answer by tabekat at 12:16 PM on Sep. 14, 2010

  • Yet this doesn't explain all of the companies who shipped jobs over to China BEFORE Obama even entered office...

    Nice try.
    bandgeek521

    Answer by bandgeek521 at 12:18 PM on Sep. 14, 2010

  • The death tax has been around for a while...............................................................?


    No one said it was implemented by Obama.


    Democrats LOVE to tax the hell out of small businesses.


    You should know these things before you comment?


    I assumed you knew this.


    Hm.


    Weird.

    mustbeGRACE

    Comment by mustbeGRACE (original poster) at 12:33 PM on Sep. 14, 2010

  • We saw the effects of this time and again when I was a trust officer at a bank. It is heartbreaking for the families.
    yourspecialkid

    Answer by yourspecialkid at 12:45 PM on Sep. 14, 2010

  • I knew it, I was just arguing the point you seemed to be making that this was somehow Obama's fault.
    bandgeek521

    Answer by bandgeek521 at 12:50 PM on Sep. 14, 2010

  • Democrats love to tax.

    Obama is a Democrat last time I checked.
    mustbeGRACE

    Comment by mustbeGRACE (original poster) at 1:04 PM on Sep. 14, 2010

  • During his presidential campaign, Obama proposed a 45 percent estate tax with a $7 million deduction. Now, farmers and small-business owners fear the president will forget his promise in order to collect more tax money for the federal government.

    Word from our nation’s capital is Congress could go one of three ways on an estate tax fix. The options are a 45 percent tax on estates over $2 million; a 60 percent tax on estates over $1 million; or a 60 percent tax on estates over $2 million.

    We should remember that states impose their own death taxes as well. Our state’s estate tax rate ranges from 10 to 19 percent after a $3.5 million exemption, with a few narrow deductions for families that own farms or timberland.
    mustbeGRACE

    Comment by mustbeGRACE (original poster) at 1:12 PM on Sep. 14, 2010

  • watching tennis

    sherribeare

    Answer by sherribeare at 5:24 PM on Sep. 14, 2010

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