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I do not begrudge anyone who inherits money. I simply want the money to be treated equally as anyone else who earns the same amount.
Well, which is it? You argued that it was unfair to have an estate tax at all. Now, you argue the opposite, it should apply to my grandfather giving me his college ring.If the estate tax is such a good thing then tax every estate not just those who pass some arbitrary, envy based number. That would at least be fair and treat all people equally.
Why shouldn't it? What moral claim do you have to a penny of it?
The estate tax should apply to everyone or no one. It applies now only to the rich for two reasons 1)envy 2) congress knows that it can single out a minority for special treatment and get away with it. There are no political consequences to feeding the envious masses with largess confiscated from Americans too small in numbers to fight it.Well, which is it? You argued that it was unfair to have an estate tax at all. Now, you argue the opposite, it should apply to my grandfather giving me his college ring.
The fact is that over the decades, Congress has debated these issues and decided that estate taxes should exempt all but the most enormous assets. Why? Because it was felt that those with $11 million in assets will still be giving their descendants a fortune, even after the tax was paid. Obviously, the GOP Congress and Trump agree, it should be ok to form inherited dynastes, just like Old Europe.
I am capable in engaging in multiple moral battles at the same time. The point here is that we are equal in our rights. What you earn is yours, by right. I have no moral claim to it. If I happen to have been sired by a wealthy tycoon, that is my good fortune. It still gives you no right to what my father earned. If he gives it to me, that is his right. If he bypasses me and gives it to you, that is his right. What you are doing is allowing your envy to guide your morality and pretending that a third party confiscating the property of others to grant you an unearned benefit is somehow moral. Its not.With all of the worthy moral fights one could have, it's interesting that your battle is the right of the rich to keep more money because they were good at choosing the right uterus.
Great. Then tax every estate. Tax every gift any father gives to his child. If your old man leaves you ten bucks in his will, report it as income. I am willing to accept that. Are you?
We have a record of inheritance from wills and bank records and other legal documents. What record would we have of ten dollar gifts? It seems your suggestion is not well thought through.
Why? Because it is income.
https://www.nytimes.com/2017/11/17/your-money/tax-cuts-small-business.html
I think when historians look back on this legislation, and what it promised to do (drive growth and increase wages) and what it actually will do (create massive economy stifling deficits, decrease social mobility, and further increase income inequality) they will share a collective sigh because of how predictable it all was.
The House bill says that up to 30 percent of business income can be taxed at the lower 25 percent rate, with the rest at the personal income tax rate. At the highest level, this is a blended tax rate of 35.22 percent, at least for businesses that qualify. That is a far cry from the 20 percent proposed for corporations
Do you believe lottery winnings should be taxed? Do you hate lottery winners?
All money is taxed multiple times.
First, YOU wouldn't have to pay ANY estate tax unless your family left you $5.5 million dollars ($11 for a couple.) Second, estate taxes are not taxed twice. Much of the value in the estate is unrealized gain. It works like this: Let's say Mom and Dad bought Apple stock in 1990, for $10 a share. That stock is now worth, after stock splits, $5,000 a share. The original $10 was paid via after-tax money but the $4,990 gain was never, ever taxed. So, why should anyone inherit that money tax free?
The same is true for Bill Gates. I just don't understand the objection to having ultra-rich people pay estate taxes. If Bill Gates didn't already decide to give most of his money away, why should his $50 billion in Microsoft stock -- the vast amount was never taxed, go to the Gates' kids free of taxation?
First, YOU wouldn't have to pay ANY estate tax unless your family left you $5.5 million dollars ($11 for a couple.) Second, estate taxes are not taxed twice. Much of the value in the estate is unrealized gain. It works like this: Let's say Mom and Dad bought Apple stock in 1990, for $10 a share. That stock is now worth, after stock splits, $5,000 a share. The original $10 was paid via after-tax money but the $4,990 gain was never, ever taxed. So, why should anyone inherit that money tax free?
The same is true for Bill Gates. I just don't understand the objection to having ultra-rich people pay estate taxes. If Bill Gates didn't already decide to give most of his money away, why should his $50 billion in Microsoft stock -- the vast amount was never taxed, go to the Gates' kids free of taxation?
I do not begrudge anyone who inherits money. I simply want the money to be treated equally as anyone else who earns the same amount.
The money won by the lottery have not already been taxed when it was originally earned. Big difference.
No, it's not. Income is money received for work or investments. An inheritance is a gift.
Recipients of inherited money did not already pay taxes on that income.
The federal bill that we are discussing is referring to the estate tax, which is paid by the deceased's estate. An inheritance tax is a state tax that you pay when you receive money or property from the estate of a deceased person.Estate tax is not the same as inheritance tax.
I dealt with that earlier. Most of the deceased's assets were unrealized gains. In the example that I gave, Mom and Dad bought Apple stock in 1990 for $10/share. That $10/share was paid from after-tax earnings. Today, adjusting for stock splits and appreciation, that $10, is worth $5,000. When was tax paid on the $5,000? Never. It still was paid only on the original $10. The $4,990 is untaxed unrealized gains.But the people they inherited it from did :doh
The federal bill that we are discussing is referring to the estate tax, which is paid by the deceased's estate. An inheritance tax is a state tax that you pay when you receive money or property from the estate of a deceased person.
Gates never paid tax on it. Upon creation of Microsoft, Gates was given millions of shares, worth a small fraction of what is today. He paid taxes on that price. Since then, Microsoft's stock price rose a million times. One doesn't pay taxes on stock until it is sold.First, that 50 billion of stock was paid for by money earned or given as part of his income. So it's already been taxed. Any earning on that stock is taxed as dividends, and if his kids inherit the stock, when dividends is paid out it will also be taxed. If they sell the stock, the profit portion will be taxed. So it will not be free of taxation.
Gates never paid tax on it. Upon creation of Microsoft, Gates was given millions of shares, worth a small fraction of what is today. He paid taxes on that price. Since then, Microsoft's stock price rose a million times. One doesn't pay taxes on stock until it is sold.
Dividends are a different issue and not part of this discussion, since we're talking about the estate tax.
https://www.nytimes.com/2017/11/17/your-money/tax-cuts-small-business.html
I think when historians look back on this legislation, and what it promised to do (drive growth and increase wages) and what it actually will do (create massive economy stifling deficits, decrease social mobility, and further increase income inequality) they will share a collective sigh because of how predictable it all was.
You'll just have to keep a record of it to be in compliance with tax laws
It is. By the person who had it to give to someone. You get a cash gift for your wedding, graduation, birthday, etc....do you claim it as income? I doubt it. Why not then? The amount of the gift shouldn't matter unless you feel that people who are lucky enough to get more should be punished.
Why? Because it is income.
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