Thanks to our dysfunctional government and the legacy of the Bush tax cuts for the filthy rich, the estate of the 74th wealthiest man in the world won't pay a cent in taxes following his death in March. http://www.nytimes.com/2010/06/09/business/09estate.html
Even the estate tax with the ridiculous level of exemption at $3.5 million per estate brought in $25 billion in tax revenue in 2008. I'm sure the deficit hawks on this board are outraged by this. The US has had an estate tax since 1916, but for some reason at the time of huge deficits our politicians have decided that revenue from the super rich (which is being passed to people who have done absolutely nothing to earn it) isn't necessary. What a travesty.
Originally posted by AThousandYoung"Dan L. Duncan, a soft-spoken farm boy who started with $10,000 and two propane trucks, and built a network of natural gas processing plants and pipelines that made him the richest person in Houston, ".....
So much for the capitalist free market concept of a meritocracy rising like cream to the top through their own talents and efforts.
You were saying?
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Originally posted by Sam The ShamI don't have $10,000 and two propane trucks. Neither does anyone I know. Anyway, that guy's dead. I'm talking about the person who receives the inheritance.
"Dan L. Duncan, a soft-spoken farm boy who started with $10,000 and two propane trucks, and built a network of natural gas processing plants and pipelines that made him the richest person in Houston, ".....
You were saying?
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Originally posted by no1marauderI basically agree with you on this one. But I would also note that, as of January 1, 2011, the federal estate tax is scheduled to kick in again (as the estate tax repeal sunsets) with an exemption of $1,000,000, at rates as high as 55%.
Thanks to our dysfunctional government and the legacy of the Bush tax cuts for the filthy rich, the estate of the 74th wealthiest man in the world won't pay a cent in taxes following his death in March. http://www.nytimes.com/2010/06/09/business/09estate.html
Even the estate tax with the ridiculous level of exemption at $3.5 million per e ssed to people who have done absolutely nothing to earn it) isn't necessary. What a travesty.
So, unless the Democratic Congress and President Obama change it, this situation will be remedied in a little more than 6 months.
Originally posted by sh76I'll bet you a $1 million that the exemption will not go down to $1 million in 2011 nor will the highest rate go to 55%. The estate tax has been absolutely gutted over the last 20 years.
I basically agree with you on this one. But I would also note that, as of January 1, 2011, the federal estate tax is scheduled to kick in again (as the estate tax repeal sunsets) with an exemption of $1,000,000, at rates as high as 55%.
So, unless the Democratic Congress and President Obama change it, this situation will be remedied in a little more than 6 months.
Originally posted by AThousandYoungIn fact I cannot go back to grad school until I can scrape up some way to pay the $10,000 debt I owe the school. That's where the cash would go. The trucks...I wonder how much those things go for? 100k each? 50k each? Even 20k each? There goes the rest of my debt. My credit would go from being in the toilet to A+.
I don't have $10,000 and two propane trucks. Neither does anyone I know. Anyway, that guy's dead. I'm talking about the person who receives the inheritance.
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Originally posted by no1marauderWho's going to stop it from going back to $1,000,000? Charlie Rangel on Ways and Means? The 59 Democratic Senators? Barack Obama?
I'll bet you a $1 million that the exemption will not go down to $1 million in 2011 nor will the highest rate go to 55%. The estate tax has been absolutely gutted over the last 20 years.
I agree that there's a good chance there will be a compromise measure to raise the exemption and/or lower the rate, but I wouldn't be sanguine enough to bet $1,000,000 on it.
The conventional wisdom is that they're going to raise the exemption from $1m, yes. But the conventional wisdom was that they'd prevent the estate tax from expiring in 2010.
In the dysfunctional political era we live, inertia is a powerful force. To avoid the estate tax kicking back in at the 2001 levels, something has to be affirmatively done about it.
Originally posted by sh76All of the above. Please don't join the loony right wingers who insist that Obama is a "socialist"; the Democratic Party has acquiesced in the sharp reductions in the estate tax and did nothing to prevent it lapsing in 2010. They have rich donors, too.
Who's going to stop it from going back to $1,000,000? Charlie Rangel on Ways and Means? The 59 Democratic Senators? Barack Obama?
I agree that there's a good chance there will be a compromise measure to raise the exemption and/or lower the rate, but I wouldn't be sanguine enough to bet $1,000,000 on it.
The conventional wisdom is that they're going to ra ...[text shortened]... te tax kicking back in at the 2001 levels, something has to be affirmatively done about it.
Originally posted by no1marauderI never said Obama is anything but centrist/ center-left, which I've said many times. Centrists/ center-left don't generally believe in eliminating the estate tax.
All of the above. Please don't join the loony right wingers who insist that Obama is a "socialist"; the Democratic Party has acquiesced in the sharp reductions in the estate tax and did nothing to prevent it lapsing in 2010. They have rich donors, too.
The House did pass an estate tax reprieve last year. It didn't pass the Senate because of the prospect of a filibuster and because the Dems were more worried about other things.
Originally posted by sh76.Sen. Obama proposes a $3.5 million exclusion in 2009 and thereafter, with a top rate at 45%. His plan will "fully repeal the estate tax for 99.7% of households," says Jason Furman, Sen. Obama's economic policy director. "He would add certainty and stability to the tax code by making the 2009 estate tax parameters permanent, exempting estates of up to $7 million for a married couple,"
I never said Obama is anything but centrist/ center-left, which I've said many times. Centrists/ center-left don't generally believe in eliminating the estate tax.
The House did pass an estate tax reprieve last year. It didn't pass the Senate because of the prospect of a filibuster and because the Dems were more worried about other things.
http://taxprof.typepad.com/taxprof_blog/2008/07/wsj-mccain-obam.html
So Obama campaigned on making the Bush cut permanent. That's "center-left" these days apparently. Don't be surprised if the Prez and the Republicans cut a deal even further slashing the tax or raising the exemption. An outright repeal isn't out of the political question either.
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Originally posted by no1marauderWell, I hope you're wrong. As an estate planning attorney, the people in my firm are really looking forward to the 2001 rules kicking back in, and we're hoping that Congress simply forgets about the estate tax, is unable to deal with it for whatever reason or that an overwhelming mood of deficit hawking overtakes the country, pushing tax cuts to the back burner.
.Sen. Obama proposes a $3.5 million exclusion in 2009 and thereafter, with a top rate at 45%. His plan will "fully repeal the estate tax for 99.7% of households," says Jason Furman, Sen. Obama's economic policy director. "He would add certainty and stability to the tax code by making the 2009 estate tax parameters permanent, exempting estates of up to $7 raising the exemption. An outright repeal isn't out of the political question either.
I also happen to think that it's a fairer tax than the income tax and to the extent that taxes should be cut, you might as well cut the taxes of people who actually did earn the money and have a real need for it.
So although intellectually I fear that you're right, I'm not giving up hope just yet.
Originally posted by no1marauderBut this is now the rudderless post-modern Republican party -- which has allowed itself to be overrun by all sorts of strange creatures.
Normally, yes. But this deal will cut rich people's taxes and benefit the wealthy which is the raison d'etre for the modern Republican party.