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Debates Forum

  1. Standard member sh76
    Civis Americanus Sum
    22 Dec '09 03:20 / 1 edit
    The estate tax

    http://www.nytimes.com/2009/12/18/us/politics/18cong.html

    Long story short, right now, federal estate taxes are set to go out of existence for one year starting Jan. 1, 2010. On Jan. 1, 2011, the estate tax comes back with a vengeance, taxing all assets over $1m at a rate of about 50%!!!

    A few weeks ago, the House passed a bill to "freeze" the estate tax at 45% with an exemption amount of $3.5m permanently. The Democrats, who officially support the estate tax, supported the bill, while the GOP, which purports to loathe the "death tax," voted unanimously against it.

    Now, which is "better" for estate tax proponents:

    a) No estate tax in 2010 and a $1m exemption starting Jan. 1, 2011

    or

    b) A permanent $3.5m exemption

    ?

    If you answered "a," not only do you win this brand new virtual toaster:

    http://beingwife.files.wordpress.com/2009/02/toaster.jpg

    You also understand this issue more clearly than 90% of US Congressmen.
  2. 22 Dec '09 03:37
    Originally posted by sh76
    The estate tax

    http://www.nytimes.com/2009/12/18/us/politics/18cong.html

    Long story short, right now, federal estate taxes are set to go out of existence for one year starting Jan. 1, 2010. On Jan. 1, 2011, the estate tax comes back with a vengeance, taxing all assets over $1m at a rate of about 50%!!!

    A few weeks ago, the House passed a bill to "freez ...[text shortened]... 2/toaster.jpg

    You also understand this issue more clearly than 90% of US Congressmen.
    there shouldnt be one its a huge killer of private sector jobs
  3. Standard member sh76
    Civis Americanus Sum
    22 Dec '09 03:39 / 1 edit
    Originally posted by voltaire
    there shouldnt be one its a huge killer of private sector jobs
    Really, now?

    Please elaborate. How does it kill jobs?
  4. Standard member telerion
    True X X Xian
    22 Dec '09 06:52
    Originally posted by sh76
    The estate tax

    http://www.nytimes.com/2009/12/18/us/politics/18cong.html

    Long story short, right now, federal estate taxes are set to go out of existence for one year starting Jan. 1, 2010. On Jan. 1, 2011, the estate tax comes back with a vengeance, taxing all assets over $1m at a rate of about 50%!!!

    A few weeks ago, the House passed a bill to "freez ...[text shortened]... 2/toaster.jpg

    You also understand this issue more clearly than 90% of US Congressmen.
    I was just reading the CBO release on this issue last morning. I'd encourage you to take a look at it.

    Also I'm not sure what you mean by whether a or b is better. Better for what goal?
  5. Standard member telerion
    True X X Xian
    22 Dec '09 06:58
    Originally posted by voltaire
    there shouldnt be one its a huge killer of private sector jobs
    Seriously. What sh76 said.
  6. Standard member DrKF
    incipit parodia
    22 Dec '09 07:24
    Originally posted by voltaire
    there shouldnt be one its a huge killer of private sector jobs
    http://en.wikipedia.org/wiki/Voltaire

    seriously, man, have you no shame?
  7. 22 Dec '09 14:49
    Originally posted by sh76
    The estate tax

    http://www.nytimes.com/2009/12/18/us/politics/18cong.html

    Long story short, right now, federal estate taxes are set to go out of existence for one year starting Jan. 1, 2010. On Jan. 1, 2011, the estate tax comes back with a vengeance, taxing all assets over $1m at a rate of about 50%!!!

    A few weeks ago, the House passed a bill to "freez ...[text shortened]... 2/toaster.jpg

    You also understand this issue more clearly than 90% of US Congressmen.
    Looks like the GOP is desperate to oppose Dem proposals even if it means hammering their own fingers.
  8. Standard member sh76
    Civis Americanus Sum
    22 Dec '09 15:03
    Originally posted by telerion
    Also I'm not sure what you mean by whether a or b is better. Better for what goal?
    Better for the goal of increasing estate tax revenues in the long run.
  9. Standard member sh76
    Civis Americanus Sum
    22 Dec '09 15:06
    Originally posted by Melanerpes
    Looks like the GOP is desperate to oppose Dem proposals even if it means hammering their own fingers.
    Actually, I looked at it from the opposite perspective.

    The Dems are so desperate to avoid having the estate tax go away temporarily, that they were willing to do something with a long term harmful effect on the estate tax.

    I'm a big proponent of the estate tax, for my own business purposes if for no other reason (I do primarily elder law and estate planning) and I am very glad that the Senate has not passed the permanent $3.5m freeze. I'm looking forward to the $1m exemption kicking in in 2011!
  10. Subscriber kmax87
    You've got Kevin
    22 Dec '09 15:11
    Originally posted by sh76
    Better for the goal of increasing estate tax revenues in the long run.
    Whats the idea of putting it on hold for a year? A couple of really rich people about to die?
  11. Standard member telerion
    True X X Xian
    22 Dec '09 15:11
    Originally posted by sh76
    Actually, I looked at it from the opposite perspective.

    The Dems are so desperate to avoid having the estate tax go away temporarily, that they were willing to do something with a long term harmful effect on the estate tax.

    I'm a big proponent of the estate tax, for my own business purposes if for no other reason (I do primarily elder law and estate plann ...[text shortened]... ed the permanent $3.5m freeze. I'm looking forward to the $1m exemption kicking in in 2011!
    Remember too that estate taxes go hand in hand with gift taxes. The government is getting a lot of that 2011 revenue (from 2010 estate and gifts) from the gift tax.

    The whole path of that legislation seems pretty odd. Maybe it will have a nagative impact on the life expectancy of the super-rich in 2010. Can you imagine all the heirs pulling for their parents to kick the bucket that year?
  12. Standard member telerion
    True X X Xian
    22 Dec '09 15:18
    http://www.cbo.gov/ftpdocs/108xx/doc10841/12-18-Estate_GiftTax_Brief.pdf

    link to the latest CBO article on estate and gift taxes with particular attention to the repeal and reinstatement of the estate tax.
  13. Standard member telerion
    True X X Xian
    22 Dec '09 15:21
    Originally posted by kmax87
    Whats the idea of putting it on hold for a year? A couple of really rich people about to die?
    Maybe opponents of it were hoping that the economy would take off in 2011 so that they can say that the estate tax is bad for growth. Silly I know, but I wouldn't put it past Congress.
  14. Subscriber kmax87
    You've got Kevin
    22 Dec '09 15:31
    Originally posted by telerion
    Maybe opponents of it were hoping that the economy would take off in 2011 so that they can say that the estate tax is bad for growth. Silly I know, but I wouldn't put it past Congress.
    Surely the philosophy behind an estate tax is to ensure that wealth privilege does not encrust itself.
  15. Standard member telerion
    True X X Xian
    22 Dec '09 15:34 / 1 edit
    Originally posted by kmax87
    Surely the philosophy behind an estate tax is to ensure that wealth privilege does not encrust itself.
    Yes, but that doesn't mean that everyone supports these taxes nor that they will resist grasping at spurious correlations in order to criticize them.