Estate Taxes

[ducknwork]

Obama agreed to exempt the first $5 million of a deceased person's estate, and to tax the rest at 35 percent. Congressional Democrats had expected a 45 percent tax rate on anything above $3.5 million. Without congressional action, the estate tax will revert to an even higher rate: 55 percent on estates valued above $1 million.

http://news.yahoo.com/s/ap/us_tax_cuts

My question is this...(maybe it is a bit naive or stupid, but that is why I am asking)

Why does the govt deserve to take any estate tax at all? Taxes have already been paid on income, property, etc...so why is it okay to once again tax this money just because someone dies? I can't understand the justification for taking almost half the value of someone's possessions when they pass away. Perhaps someone can explain this to me.

[jbonnot03]

I agree wholeheartedly. It is double taxation. Just die before the end of the year. 2010 has no estate tax.

Makes me wonder if something fishy went on with George Steinbrenner. Supposedly the US govt would have received millions if his estate would have been taxed.(just couldn't help but come up with a conspiracy theory)

[ducknwork]

Just die before the end of the year.

Thanks for the advice, but it won't affect me anyway. My estate is only valued at $4.9 million, so I'm under the proposed exemption amount.

[Marvin S]

The Estate Tax should be whatever the capital gains rate is on all funds where no tax has been paid.

For example - I buy a stock at $10, it goes to $50 so I sell. The $40 is taxable at the rate I qualify for. It should be no different for estate tax, IMO.

[dixidawg]

Why would it be assumed "sold" when someone dies?

Would the same apply to real estate? If my father bought a house in 1950 for $10,000 and is now worth $500,000 should the heirs have to sell it in order to pay the tax?

[Roger Perry]

http://news.yahoo.com/s/ap/us_tax_cuts

My question is this...(maybe it is a bit naive or stupid, but that is why I am asking)

Why does the govt deserve to take any estate tax at all? Taxes have already been paid on income, property, etc...so why is it okay to once again tax this money just because someone dies? I can't understand the justification for taking almost half the value of someone's possessions when they pass away. Perhaps someone can explain this to me.

To pay down the National Debt that the Republicans created and the Democrats continued.

[BrianW]

So should the government give the family a tax credit if the property was bought for 200000 and was only worth 125000.

Pete

When my mother died, the basis for the estate calculation purposes on her house was $295,000, the assessed value for that calendar year. When I could only sell it for $225,000 two and a half years later, I took a $70,000 capital loss on it, the writeoff spread over a few years.

[road kill]

http://news.yahoo.com/s/ap/us_tax_cuts

My question is this...(maybe it is a bit naive or stupid, but that is why I am asking)

Why does the govt deserve to take any estate tax at all? Taxes have already been paid on income, property, etc...so why is it okay to once again tax this money just because someone dies? I can't understand the justification for taking almost half the value of someone's possessions when they pass away. Perhaps someone can explain this to me.

So they can redistribute it to someone else for VOTES!!

It's all in Karl Marx's writings.

Make sense now???


RK

[paul young]

who knew Woodrow Wilson was a socialist?

he was the president at the time the estate tax was enacted. -Paul

[road kill]

who knew Woodrow Wilson was a socialist?

he was the president at the time the estate tax was enacted. -Paul

Maybe you should read up on good old Woodrow..........he was indeed a progressive.


RK