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Estate Tax Bomb coming: Rise of the ‘death tax'

Posted by on Nov. 19, 2012 at 12:03 AM
  • 26 Replies

Estate Tax Bomb coming: Rise of the ‘death tax'

 NOVEMBER 18, 2012 6:36 AM

One of the hardest things to do in life is burying a loved one. However, if you are the heir of an individual who owns property that is valued higher than $1 million, you may soon end up paying 55%, meaning that the US government would own more of that property than you would. That is, if Congress decides to trip over the ‘fiscal cliff', allowing for the Bush tax cuts to expire.  Business Week reports:

             

If Congress does nothing, as would be the case if the Democratic bill and no others became law, the exemption would drop to $1 million and the rate would rise to 55 percent. Under that regime, the tax would affect about 2 percent of estates, or 55,200, according to the JCT.

 

 

However, Democrats are willing to ‘graciously' compromise, saying that a $3.5 million property would only be taxed at a 45% rate. Awesome.

Essentially, the Estate Tax, or ‘death tax', was originally put in place for two reasons:

#1.  It would raise revenue in times of financial difficulty for the US government (e.g., the Civil War).

#2.  It would prevent a massive expanse of wealth from staying within dictatorially powerful families. Even the Founding Fathers favored such a tax, seeing how England's aristocracy was the root of much tyranny.

Up until around 1916, Estate Taxation only climbed to 10%. It could now become as high as 45% under the uneasy compromise being forged with the Obama administration to avoid the ‘fiscal cliff'.

Just imagine, the U.S. government is asking citizens to pay the IRS about half their inheritances once their loved ones pass on. The Founding Fathers would call such a state of affairs ‘intolerable.'

by on Nov. 19, 2012 at 12:03 AM
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Replies (1-10):
_Kissy_
by on Nov. 19, 2012 at 6:54 AM
#1. It would raise revenue in times of financial difficulty for the US government (e.g., the Civil War- CURRENT WARS overseas and here).

#2. It would prevent a massive expanse of wealth from staying within dictatorially powerful families. Even the Founding Fathers favored such a tax, seeing how England's aristocracy was the root of much tyranny.


ITA
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Ednarooni160
by Eds on Nov. 19, 2012 at 7:01 AM
4 moms liked this

The death tax should be rid of (imo)..

Hsmom1966
by on Nov. 19, 2012 at 8:13 AM
3 moms liked this

Bigger government is NOT better!

Canvas_says
by Silver Member on Nov. 19, 2012 at 8:18 AM
4 moms liked this

This "tax" is ridiculous and especially damaging to private small business's and farms. 

rocketracer
by Gold Member on Nov. 19, 2012 at 9:33 AM
3 moms liked this

The death tax is ridiculous. 

kailu1835
by Silver Member on Nov. 19, 2012 at 12:41 PM
5 moms liked this

Talk about double taxing.  It's taxed when it's earned, and then taxed when they die.

itsmesteph11
by Silver Member on Nov. 19, 2012 at 3:36 PM
3 moms liked this

 The Government is the reason for all the troubles of America.  While they are supposed to keep us safe, they instead seem to exist soley to figure out the guiness record  of ways they can get more money to spend on their own wish lists.  There is absolutely no reason already taxed money should be taxed again upon death just because the Government has overspent and needs a cash infusion.  There will never be enough money to satisfy the Government, especially this one.  

mommasaint
by Bronze Member on Nov. 19, 2012 at 3:46 PM
2 moms liked this

This tax is the reason my parents will not just be able to leave the Ranch to my brother. It's disgusting.

autodidact
by Silver Member on Nov. 19, 2012 at 3:57 PM

ridiculous. so you're an anarchist? 

Quoting itsmesteph11:

 The Government is the reason for all the troubles of America.  While they are supposed to keep us safe, they instead seem to exist soley to figure out the guiness record  of ways they can get more money to spend on their own wish lists.  There is absolutely no reason already taxed money should be taxed again upon death just because the Government has overspent and needs a cash infusion.  There will never be enough money to satisfy the Government, especially this one.  





lylalane7275
by Silver Member on Nov. 19, 2012 at 4:06 PM
4 moms liked this

But, but, just because your evil rich parents worked all their lifes for this farm, someone that didn't work hard for a farm needs a piece of it.  It's only fair.  (insert sarcastic font).

Quoting mommasaint:

This tax is the reason my parents will not just be able to leave the Ranch to my brother. It's disgusting.


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