[Igthorn]

Welcome to Free Republic - Keep coming back.

I'm a long time lurker and seldom post, but I couldn't resist commenting on this.

Name any country, nation or culture that has embraced redistribution of wealth and has continued to advance.

One thing well meaning socialists or communists always forget is that people will always be people. In a capitalist society greedy power hungry individuals tend to gravitate toward business as their way to power. In business you still have to satisfy your customers (sell a decent/needed product). In a government controlled society those greedy, power hungry people still exist - but government is their only road to power. Once in power there are no checks and balances.

One of the efforts to redistribute wealth here in the US is the estate tax - so called the millionaire tax. An estate valued at over 1 mil is subject to HEAVY taxes. Here in Ohio this is destroying family farms 260 acres, farm buildings, farm equipment may provide a reasonable income but if you try to leave it to your kids they are going to have to come up with a real hefty cash tax payment because of the value of the property.

[John Lenin]

Excellent comeback to the obvious answer.

[B4Ranch]

"One of the efforts to redistribute wealth here in the US is the estate tax - so called the millionaire tax. An estate valued at over 1 mil is subject to HEAVY taxes. Here in Ohio this is destroying family farms 260 acres, farm buildings, farm equipment may provide a reasonable income but if you try to leave it to your kids they are going to have to come up with a real hefty cash tax payment because of the value of the property."

The simple answer to this is 'FAMILIY LIMITED PARTNERTSHIPS'. Mom and Dad are the General Partners with the children being Limited Partners. The Limited Partners have no decision rights authority until they become General Partners. When the parents die, all property owned by the FLP automatically passes to the kids which were already partners who then gain decision making rights authority. There is no estate taxes whatsoever on FLP property, just normal business taxes.

The IRS has taken this to court and lost repeatedly in all cases where the General Partners did not form the partnership to avoid taxes, such as being in poor health at the time with death a strong probability within a year or two.

[who_would_fardels_bear]

Why is it that a farmer can't incorporate his farm, make his children employees and have the farm automatically pass on to his children without estate tax issues?

Just wondering.