Posted on 09/23/2016 6:50:05 AM PDT by Rockitz
Hillary Clinton wants to increase the estate tax to 65 percent on the wealthiest Americans, according to her latest tax plan.
The Clinton campaign estimates that the increase would raise an addition $75 billion in revenue over the next decade. The current rate maxes out at 40 percent.
But Hillary Clinton and her husband Bill have created a number of tax shelters in recent years to dramatically limit their payment of the very same tax. As Bloomberg reported back in 2014: “To reduce the tax pinch, the Clintons are using financial planning strategies befitting the top 1 percent of U.S. households in wealth.”
In 2010 the Clinton created “residential trusts” and the following year moved their Chappaqua estate into the trust, according to their financial records. As David Scott Sloan, a partner at the firm Holland Knight explained the Clinton trust to CBS News, “You’re creating things that are going to be on the nontaxable side of the balance sheet when they die.”
The move will save the Clintons hundreds of thousands of dollars in estate taxes, according to accountants quoted by Bloomberg.
(Excerpt) Read more at breitbart.com ...
Trump needs to ask Hillary what form of ownership the Clinton estate is in. Force her to reveal their use of tax shelter schemes.
The current rate is “only” 40%... but that’s the Federal bite. Many states add an extra 10 to 15 percent, as well.
So, if you don’t plan to die in a state which doesn’t add an additional tax... like FL, government at all levels takes over half above the exemption threshold. With a 65% Federal bite, the combined marginal rate could hit 80%!
“So what is your effective tax rate if you make all your money through a charity that only pays out 6% of it receipts? “
All of the Clinton expenses for travel, food, lodging, meals and entertainment are paid for by Foundation employees or directly by the Foundation. Technically, they should be paying taxes on the value of the items they consumed. But, most likely they are not. I would guess that they only pay taxes on the many government retirements. However, they have substantial charity gift giving deducted from those several incomes, thus reducing the taxes paid. The charity most often chosen is their own Clinton Foundation. Some pundit, rightly, termed it a Clinton slush fund.
You aren’t counting the taxes already paid on that money when it was earned. That could drive up the effective tax rate to 90%.
Whenever you hear a recent story about "a farmer whose family had to sell the farm just to pay the estate taxes after he died," the story you're not getting is that his adult children were doing something else for a living and had no interest in running the farm.
Simple Solution:
The Majority of Americans do not have the financial capabilities to hire expensive Tax Attorneys and Accountants to setup these Tax Shelters created by Congress for themselves and their donors.
So I Propose we Allow Americans to SELF IDENTIFY which Assets are TAXABLE at the Time of their Death.
That is exactly the plan. Anyone with large holdings that are not tax sheltered i.e. a family farm will end up having to sell.
This all begins with the notion the government owns your money. I got into an argument with a local political figure recently about the local budget when he called taxes “revenue”. I told him it was extortion, not revenue as revenue is something you get in exchange for a product sold. Extortion is using the law to take something from someone else.
Having worked in this area for many years, yes they will have to sell the ranch most likely. This is happening with so many businesses across the US. Family owned businesses going down the tubes just to pay estate tax. I had a client's father that owned 3 large farms, upon his fathers death the IRS wanted 1.5 million for estate taxes. They had to have a fire sale on one of the farms just to pay the taxes. Now they are down to 2 farms and will owe millions when the son dies, so eventually the disgusting government will get all of the tax money out of the farms and the kids get nothing from the family farms.
They place money into their Foundation , get a tax deduction.
Spend the money as an expense.
And are praised for being so generous.
Quite a gig.
During my “working and productive” years, I handled many Estate Tax situations. This Tax, while easily sold to the normal person, citing only the ultra rich will pay for it the actual situation is quite different.
These assets have already been taxed.
It hits Farmers and small business whose assets are mostly In inventory and equipment extremely hard.
For instance: if a farmer just seeded his ground, the IRS will determine the worth of the harvest. If your cow is pregnant, the monetary value is determined by the worth of the born cow.
There are many different valuations they can apply to the worth of the property and equipment.
The heirs will have to satisfy their IRS debt in CASH even though the person or firm doesn’t have it. This will force a distress sale which in most cases does not bring in true value. Forget about leaving the business in the family. forget about the jobs of the employees who are now out of work.
This is probably the most cruel tax of all and most people would be cheering it since they think it taxes the super rich even though there may not be a dollar in cash in the company.
sad
“Quite a gig.”
I think the nation has caught onto the Clinton Slush Foundation. I would be surprised if the next administration does not have them investigated. Like cockroaches, anything the Clintons do can not stand the light of day and will run for cover.
I doubt they will do time for their many, many crimes. But probably the Foundation will go profitably away. Some of it will disappear into foreign banks. Some of it will become hard assets that mysteriously get lost in the mail (or, something.) A tiny portion will become fine payments.
“So what is your effective tax rate if you make all your money through a charity that only pays out 6% of it receipts? “
When Trump is elected, it becomes 94% and all foreign donations to American foundations with over 1 million in assets are taxed at 90%. That should send the Clinton’s back to Arkansas. They can rent space in their trailer/massage parlor/Presidential museum.
“Do we know the amount of wealth that will trigger the 65%?”
A quick answer is $500 million.
Here’s her proposal:
First, lower the exemption amount from the current $5.45 million to $3 million for an individual. That will affect a lot more estates and raise the rate to 45% from current 40%.
$10 million+ taxed at 50%
$50 million+ taxed at 55%
$500 million+ taxed at 65%
Keep in mind many of these estates have already been double-taxed over the years, so this is another confiscation of wealth.
she would make it 100% for everyone, if she thought she could get away with it.
We own a family owned business and a small ranch. My husband is 81 and not in good health. He has a brother and a sister and each own 1/3. I wonder what will happen when he passes, I know that our accountant has made some arrangements. But if things change and my husband dies the next day, what then?
I remember a few years ago that a period of time, maybe 6 months, there was no provisions to collect estate taxes, a friend of mines, very wealthy father died on the back seat of his limo during that period and no estate taxes were due. The gov is not going to let that happen again.
Tim Geithner didn’t pay his taxes and Obama gave him Sec of Treasury so the holy of all holy causes is one Democrats don’t like to pay THEIR taxes.
Thanks for the figures.
Stop just wondering and see an estate attorney soon, very soon. Please.
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