Estate Taxes

[cotts135]

Even though you cont inflation as ordinary income, your statement is the best arguement for no exemption from the death tax. You said "TAX IT ALL THE SAME" You also say "THOSE WHO INHERIT THEIR MONEY GET A FREE RIDE". Do you include the government and the beneficiaries of income redistribution as those that get a "FREE RIDE"?
Tax estates as ordinary income? I wonder how many people on this forum would see their spouses and kids put out on the street as a result of an untimely death of a spouse? Lets take a reasonably successful retriever trainer age 50. Maybe a 200,000 house and land, say 100,000 in equipment, and say a nest egg of maybe 100,000. Finally out of debt after 20 or 20 years. Community property state, spouse owes ordinary income tax on 200,000. Equals tax of about 50-55% or about $100,000 including payroll tax. You are sure right, the spouse and dids would not be getting a free ride. GOOD PLAN

What are you talking about? In this scenario they don't even trigger an estate tax.

[caryalsobrook]

What are you talking about? In this scenario they don't even trigger an estate tax.

Read Yardley's quote. Ordinary income tax on ALL of the estate. No exemptions. Anyway why have an exemption at all for any estate tax? As said why do the family deserve any of the estate tax free?

[jbonnot03]

What if the estate was originally owned by Joe. Joe dies and passes the estate to Joe, Jr. Joe, Jr. then dies and passes the estate to Joe, III.

Should the estate be taxed both times? I don't think so.

[caryalsobrook]

What if the estate was originally owned by Joe. Joe dies and passes the estate to Joe, Jr. Joe, Jr. then dies and passes the estate to Joe, III.

Should the estate be taxed both times? I don't think so.

You are right. Just another fact pointing out the stupidity of a death tax in the first place, much less an exemption of a million, 5 million or 100 million in the first place. It punishes those who save and rewards those who don't. Good system if you want to reward failure and punish success. But what do you expect from progressives, liberals, socialists, or Marxist-Linninists? Different breeds but same species. Conservatives should argue for NO EXEMPTIONS for the death tax then all would understand and think "Oh NO, YOU ARE TALKING ABOUT TAKING WHAT I HAVE SAVED TOO!" I personally don't have near 5 million in assets and probably won't be affected even if they set a lesser amount but I see no reason to steal from someone who has managed to save in order to give their children a better chance.

All arguements that I have seen for a death tax would preclude any exemption, soif we are to have it then let there be no exemption and see how many people would agree with having one and what percentage they would think reasonable. I suspect a far greater percent would say "Oh sh### now you are talking about what I have saved." That would leave only those who have nothing and would not care.