Inheritance Tax-Fiscal Cliff

theiioftx

theiioftx

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Interesting happenings in South Dakota:


Farmers are land-rich but cash-poor, he said. If the estate tax exclusion drops to $1 million, as some reports have suggested, many family farms would be imperiled by a hefty tax bill.

"There's no God-blessed way in God's world to pay that tax," he said.
The Link
 
Here is an article about the "fiscal cliff" that addresses this to some degree, but the overall theme of these whole negotiations seems to be that the Republicans have to give up everything while the Democrats don't.

I understand it is ludicrous to stall talks when it comes to taxing the rich, but it sounds like even if the Republicans agree to this that the Dems won't even give ground in other areas that the Repubs want for concession for the tax increases.

There has to be compromise on both sides but it looks like this will not happen. I don't care if taxes increase but I am not big on discretionary spending being decreased. The heart of the problem is on the debt, how are they going to address that? We need tax reform but the bigger issue is how are we going to keep from paying huge amounts of money on the interest that the debt creates?

Link
 
Seems like the best the Pubs can do is to pass the fiscal cliff spending cuts with extension of current tax law and a tax increase of some minimal amt on those earning over 1 million and leave it up to the Dems to explain to Americans their reason for accepting or rejecting it. It must be explained by Pubs though that it is better than the original fiscal cliff plan because it makes the same spending cuts but without the tax implications. Pubs so far have been killed on the PR front on this debate.
 
Don't y'all know? Obama and both sides of the aisle won the election with 99% of the popular vote so they have a "mandate". And apparently that mandate was to tax and spend more despite the polls that show many Americans want government to reign in spending.
 
There absolutely is a mandate to raise taxes on everyone making over $250,000 a year. Any movement off of this number is a compromise.
 
Nice projection. The Democrats have compromised. The House couldn't even vote to raise taxes on folks making over a $1 million a year.
 
Here's the Democrats' latest offer, as reported by Lori Montgomery and Paul Kane of the Washington Post:* The Democrats agreed to raise the income threshold for tax increases to $450,000 a year (couples) from the prior $250,000. The Republicans are insisting on $550,000 threshold. This is a massive tax cut for almost the entire country relative to the rates that will otherwise take effect on January 1. (So agree on $500,000 already and call it a day.)

* However, to the Republicans' chagrin, the Democrats insist on raise capital gains and dividend taxes to 20% on households over $250,000 and reducing some of the allowable deductions. Importantly, this, too, is a massive tax cut relative to the scheduled changes, which would boost dividend taxes to 40% on incomes over $250,000.

* The Democrats conceded on the estate tax: They'll keep the threshold for taxable estates at $5 million, with a 35% rate over that level. This, again, is a massive tax cut over current law, in which the threshold will drop to $1 million with a much higher rate.

* The Democrats' offer would permanently protect middle-class households from the Alternative Minimum Tax. No details on how this would work.

* On the spending side, the Democrats' offer would delay the "sequester" (automatic spending cuts) until 2015. This would cost an estimated $200 billion. But it would avoid the cuts to the military budget that the Republicans are so desperate to avoid.

* The Democrats would also extend unemployment benefits for a year, extend farm subsidies for a year, and avoid a 27% cut in Medicare payments to doctors. The Republicans say they want offsets to these spending cuts.

The Link
 
This is a massive compromise when placed in context of who does and does not have leverage. The Republicans only leverage is that of a terrorist hell bent on damaging the US economy.

And mark my words they will do it again over the debt ceiling in about a month.
 
You get taxed when you earn it. If you invest it they tax you more.

You should be able to give your money, assets TAX FREE to whom ever you want with no restrictions. It's NOT Uncle Sam's money!!

Can ANY left poster on here tell me why we even need an inheritance tax, AND why you think it's okay to tax a person AFTER he is dead.
 
Prodigal's post is why the Tea Party cannot die fast enough - Exhibit 2,743.

You people have no clue as to how to run a government and consider the word compromise to have four letters. You guys will get to shut the government down in February or March over the debt ceiling which I think will end the Tea Party for once and for all (pending the further House cleaning elections of 2014 that only gerrymandering might save you from).

Why is it being on the political right in this country means that you not only don't learn from history, but you get to pretend that it never even occurred?
 
I am not trying to pick a side on this issue but what compromise did the Dems give up for this temporary deal? The Pubs gave up a tax increase and I didn't see anything about any spending cuts? This whole deal seems one sided to me.
 
as Deez points out there is a difference between an estate tax and inheritance tax. I'm not in favor of an estate tax but rather the inheritance tax.

IMO the pro's for inheritance tax are 1) it promotes wide distribution of the capital to avoid taxes (ie. I'm going to give 3Mil to 50 people instead of 150M to one person) and 2) It keeps the lucky sperm club from stepping into life with their whole world already laid out in gold leaf. IMO that flies directly in the face of one of our core principles, ie you have the ability and responsibility to earn your own way in this country.

I would support a 3Mil inheritance tax. at that level you could provide an annuity for a child that would allow them to live 60+years comfortably without ever working but they wouldn't be able to jet-set on a distro of that level.

for more detail...
truth-out.org/opinion/item/8316-to-whom-much-is-given-why-we-need-to-tax-inheritance
 
Please tell me your Economics education is not from UT. You are calling everyone stupid and calling their posts stupid because they want excessive spending addressed? Maybe some of us know and understand the reality of a balanced budget approach to business, government and life.

One must believe you work for a government agency.
 
Well said. I am amazed at how the Left cannot grasp simple principles of hard work, living within your means and saving for not only your future, but for your family's long term security.

Many Americans have worked their asses off to give their kids and grandchildren opportunities. The democrats hate this philosophy and want those same people to support those in this county who will not. Sooner or later, this country will collapse under the overwhelming demographic of these same freeloaders spitting out more babies and ultimate voters whose only criteria for gaining their vote is sticking their hand out for more entitlements via taxing others.
 
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