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IMPORTANT ISSUE : Estate Tax

Posted by on Oct. 21, 2017 at 4:52 AM
  • 26 Replies

Threads about what Melania wear or doesn't wear may be entertaining for some, but they are irrelevant.

Estate Tax is important.   Can we discuss Trump's proposal, without getting side tracked into personal attacks against him or other posters, or what Obama or Hillary did or did not do?    Please?

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Trump-GOP tax plan: The estate tax may soon disappear

By   White House FOXBusiness


President Donald Trump is expected to unveil his signature tax reform blueprint on Wednesday and details are already starting to emerge about which tax rates could be cut back as well as the possible elimination of some of the more controversial deductions, including the eradication of the estate tax, FOX Business has learned.

Since the start of his administration, Trump has been considering moving forward with eliminating the estate tax – also known in Republican circles as the “death tax” – and according to those familiar with the matter, his request could be granted as part of this week’s larger tax reform outline.  

Those same sources confirm to FOX Business other details expected to be revealed this week include cutting the corporate rate from 35% to 20%, reducing the top income rate from 39% to 35% and breaking down the seven income tax brackets from seven to three.

A White House spokeswoman declined to comment at the time of publication.

The federal estate tax is a tax on property including real estate, cash and stocks, that is transferred from deceased persons to their heirs. The catch is only the wealthiest estates in the United States pay the tax because it’s levied against those whose total estate exceeds a certain exemption level.

According to the Joint Committee on Taxation, 99.8% of estates owe no estate tax at all, leaving the estates of 0.2% of the wealthiest Americans to pay up.

Since the Internal Revenue Service (IRS) has an exemption limit of $5.49 million per person, according to the Center on Budget and Policy Priorities, an estate worth approximately $6 million would be required to pay a tax of, at most, $510,000. In other words, the wealthiest taxpayers owe a small amount of their estate’s value to the government if it exceeds the federal exemption requirements.

Even though the “death tax” may impact a minority of Americans, Trump is still determined to eliminate that which he called a “tremendous burden” at a recent rally in North Dakota.

“We’ll also protect small businesses and family farmers here in North Dakota and across the country by ending the death tax,” Trump said. “Tremendous burden for the family farmer, tremendous burden. We are not going to allow the death tax or the inheritance tax or the whatever-you-want-to-call-it to crush the American Dream,” he added.

In a sign a move like this could cause havoc within Democratic congressional ranks, Senate Minority Leader Chuck Schumer (D-NY) responded to Trump readdressing the elimination of the estate tax in a conference call with reporters a week after his rally in North Dakota.

''Repealing this tax is not a tax cut for the middle class,'' Schumer said. ''It's a tax cut for the wealthy elites in this country the president promised to stand up to,” Schumer then said.

Mark Mazur, director at the Tax Policy Center, tells FOX Business he agrees with Schumer that eliminating the estate tax would only help the wealthiest of Americans.

“There’s been a big push for over a decade to kill this off as way to mainly help well off individuals. Look at it like this: if the estate tax is no more, then a couple worth $10.9 million sees no change at all, a couple [worth] just over $11 million would see a little change and a couple worth $100 million would see a huge difference,” Mazur said.


And that's Fox saying that.

http://www.foxbusiness.com/politics/2017/09/25/trump-gop-tax-plan-estate-tax-may-soon-disappear.html


[I know Ivanka and Donald Trump Jr will gain more than $1,000,000,000 in savings (1 billion dollars) upon their father's death, if the estate tax is abolished, but let's leave the issue of nepotism to other threads, and concentrate upon the tax itself for this thread.]

by on Oct. 21, 2017 at 4:52 AM
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Replies (1-10):
Clairwil
by Ruby Member on Oct. 21, 2017 at 4:55 AM
2 moms liked this

For balance, here's the alternative point of view:


Still, free market economists such as Art Laffer disagree and believe it should be repealed immediately. “It is the most immoral offensive major tax I know because you can earn your income fair and square and pay your taxes and you can take what you made off your taxes to Las Vegas and gamble,” Laffer said.

“As far as my federal government is concerned, it’s my money you rat. If you take that same money and give it to your kids, they will then tax you for it. It’s the most immoral tax I’ve ever seen. The reason I work and create an estate is for my kids. It absolutely kills off growth and it’s a terrible tax,” the former Reagan economic adviser explained.  

Clairwil
by Ruby Member on Oct. 21, 2017 at 4:57 AM

So what do you think?

Immoral tax?

Or vital counterbalance to the free market tendency for the rich to get richer while the poor get poorer (because the rich can leverage their money to get better deals from politicians, banks and lenders, and with a 'pay to learn' university system, that advantage gets entrenched for their next generation)

romalove
by Roma on Oct. 21, 2017 at 5:17 AM
3 moms liked this

I think it's immoral to concentrate on cutting taxes for the wealthiest people while pretending that you're helping little country farmers.  Tell the truth, you're really helping the richest people keep their fortunes intact even in death.

Quoting Clairwil:

So what do you think?

Immoral tax?

Or vital counterbalance to the free market tendency for the rich to get richer while the poor get poorer (because the rich can leverage their money to get better deals from politicians, banks and lenders, and with a 'pay to learn' university system, that advantage gets entrenched for their next generation)


Donna6503
by Platinum Member on Oct. 21, 2017 at 5:30 AM
Bump for later
codfish
by Silver Member on Oct. 21, 2017 at 7:23 AM
1 mom liked this
This 100%

I am not jealous or envious of those who are rich. Plain and simple that is what it comes down to for most, they just won't admit it.

You earn it, you pay taxes, yet because of the amount the government should get to double dip at death? Ummmm, no


Quoting Clairwil:

For balance, here's the alternative point of view:

Still, free market economists such as Art Laffer disagree and believe it should be repealed immediately. “It is the most immoral offensive major tax I know because you can earn your income fair and square and pay your taxes and you can take what you made off your taxes to Las Vegas and gamble,” Laffer said.

“As far as my federal government is concerned, it’s my money you rat. If you take that same money and give it to your kids, they will then tax you for it. It’s the most immoral tax I’ve ever seen. The reason I work and create an estate is for my kids. It absolutely kills off growth and it’s a terrible tax,” the former Reagan economic adviser explained.  

SamMom912
by Member on Oct. 21, 2017 at 7:38 AM
There are so many ways to hide and pass significant monies on to children (trusts) that I seriously dont feel badly for a families burden of taxing 100 million in taxes since Im sure that is left over after sheltering as much as possible.
Why is time and effort being spent on this? I assume its peer pressure from golfing buddies.
MeaganP
by Member on Oct. 21, 2017 at 7:38 AM
This tax plan is going to hurt people in the middle class that live in states that pay city and state income tax like New York New Jersey and California. They want to limit the amout that can ge deducted

So essentially they will be lowering the rate but increasing the car by lowering the deductions
SlightlyPerfect
by Babushka Blockparty on Oct. 21, 2017 at 7:52 AM
It affects me, so obviously it's in my best interest to be for it, but i'm against it.
atlmom2
by Gold Member on Oct. 21, 2017 at 9:03 AM
1 mom liked this
Estate tax is double dipping and shouldn't exist anyway. We have everything in a trust we own.
Clairwil
by Ruby Member on Oct. 21, 2017 at 11:39 AM
3 moms liked this


Quoting atlmom2: Estate tax is double dipping

I'm unconvinced.

If a 20 year old receives $1,000,000 from an employer, they have to pay tax on the money they receive.

If a 20 year old receives $1,000,000 from a lottery company, they have to pay tax on the money they receive.

If a 20 year old receives $1,000,000 in interest from a bank deposit they own, they have to pay tax on that additional money (the interest) that they come into posession of.

If a 20 year old receives $1,000,000 in dividends from shares in a company they own, they have to pay tax on it.

If a 20 year old buys some shares for $5,000,000 and then a year later sells them for $6,000,000 they have to pay tax on the additional $1,000,000 they came into posession of.

If an individual comes into posession of money that they didn't previously posess, they pay part of that to the government.   That's the social contract.   It isn't theft.   Paying it is one of the duties you sign up for, in return for the benefits of being a citizen of your country.


So why should it be any different when the 20 year old receives $1,000,000 that they didn't previously posess, from their father's estate, rather than from the bank, from a company or from a random charity?

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