Posted on 01/19/2015 12:21:35 PM PST by Nachum
As the old saying goes, there are two things that are certain in life, death and taxes. Tomorrow night during his 2015 State of the Union speech, President Obama will announce that people paying taxes their entire lives just isn't good enough. The President wants the current 40 percent death tax rate increased to 60 percent. Americans for Tax Reform breaks down the details:
2. Stealth increase in the death tax rate from 40% to nearly 60%.
Under current law, when you inherit an asset your basis in the asset is the higher of the fair market value at the time of death or the decedent's original basis. Almost always, the fair market value is higher.
Under the Obama proposal, when you inherit an asset your basis will simply be the decedent's original basis.
Example: Dad buys a house for $10,000. He dies and leaves it to you. The fair market value on the date of death is $100,000. You sell it for $120,000. Under current law, you have a capital gain of $20,000 (sales price of $120,000 less step up in basis of $100,000). Under the Obama plan, you have a capital gain of $110,000 (sales price of $120,000 less original basis of $10,000).
There are exemptions for most households, but this misses the larger point: the whole reason we have step up in basis is because we have a death tax. If you are going to hold an estate liable for tax, you can't then hold the estate liable for tax again when the inheritor sells it. This adds yet another redundant layer of tax on savings and investment. It's a huge tax hike on family farms and small businesses.
(Excerpt) Read more at townhall.com ...
When I would see Pelosi standing for every word out of O hloes mouth in the past I was secretly hoping she would lose her balance and fall flat on her face.
This is bred of hatred and malice towards the ‘haves’, with an ill-conceived incredibly false assumption about helping the ‘have nots’. This is communism at its best, and is just another of Obama’s grand redistribution schemes.
Personally, I have worked hard and not spent money - living perpetually below my means (in general), because I want to make sure my family is taken care of and that my children have a secure future. Why should my family and most specifically my children be penalized because I saved money and didn't spend it on myself?
If I didn't save this money, and instead lived paycheck to paycheck, going on expensive vacations, going golfing at the same places Obama golfs at, buying season tickets to games, paying for people to do everything for me (e.g. cutting grass, painting, basic home repairs, etc. etc.), and had nothing to ‘pass on’, the government would not get the tax money (with the exception of sales tax, but it would be a pittance compared to the ‘death tax’).
Just what I needed to hear to make my day..
Can't make this stuff up can we, kids?
anything he can dream up to wreak further damage on USA or our economy, morale, morals, defenses, allies......or eliminate any more American jobs.....
you can count on it!
Outstanding comment from the article:
“When it comes to tax hikes Democrats are like a teenage boy on a prom date: they keep asking the same question different ways but always to the same point.”
maybe like a teenage Ted Bundy.
The death tax is pretty much a ruse, because anyone with enough money to qualify is smart enough to put it in trust and otherwise make it unavailable for taxation. The biggest exceptions to this are family farms, which unless a family incorporates, literally, to protect their assets, they will lose the farm.
“In 2011, estate and gift taxes comprised 0.3% of the taxes collected by the federal government.”
We saved for our kids college. Like you are suppose to do.
You're supposed to save for college so that the money can be taxed to pay for kids whose parents haven't saved to go to college.
It's only fair.
Taxes are not fair and never have been They are set by the person with the biggest sword and army and are paid by the people with smaller ones. The modern concepts of taxes being ‘fair’ are just pixie dust and unicorns. Get used to it.
I have FAR better, more important things to do than watch obama READ yet another speech that’s been written FOR him.
Like watch the clothes dry in the dryer.
In a nutshell.
Obama knows you can’t take it with you. He wants to make sure you nasty blood- sucking rich people (”rich” - LOL - the threshold is very low) can’t leave it to your spawn.
I’m sure he’ll find a special exemption for his family, though. Maybe the “politically protected” exemption?
Under the Obama proposal, when you inherit an asset your basis will simply be the decedent's original basis.
This is not the inheritance tax, this is a capital gains increase. Using the example cited (and my parents left me a house so this would apply) the capital gain realized upon the sale of an inherited asset is based on the value when it was initially acquired, not when it was transferred at death. So if the market value when the estate was settled is 100K and sold for that amount, but it was purchased for 40K the estate will pay a capital gain on the 60K.
Why not just let the poor ransack rich people’s houses, farms and businesses. Worked for Zimbabwe.
Any one of those would have us on the floor in 15 minutes.
Fortunately even a squish like Boehner isn't going to pass this left wing wet dream.
Grave robbing throughout history has been found to be culturally unsavory and immoral. Leave it to the progressives and obamaphiles to embrace it as a virtue.
Obama’s new USA Cuba Fidel smiles.
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