Posted on 01/23/2015 11:32:35 AM PST by Kaslin
Let's assume George and Ethel, two teachers, purchased their Southern California home in 1966 for $45,000. Lets also assume that over the next fifty years, the value of the house increased to $1,345,000. Let's also assume that George and Ethel had four children and each of them went to a private four year college and that George and Ethel continued to re-finance their home to put their children through college and take a few cruises. Today, there is a $1,145,000 loan on the house. With pensions and other savings, the now retired teachers manage to pay their mortgage and live a quiet life.
If George and Ethel were to die today, there would be no estate tax and their children would get $200,000 from their inheritance. Under Mr. Obama's tax plan there would be $168,000 of taxes due as the result of his capital gains tax plan. With the cost of accountants etc., the children would get something less than the $32,000 under the proposal. This couple would see the inheritance to their children essentially wiped out.
If Bill and Mary spent their entire lives creating a service business that had a value of $1,145,000, under current law, there would be no estate taxes. Under the Obama tax plan, there would be an estate tax due of $264,600. While this tax would not be due until the business is sold, it is an estate tax that must be paid. Bill and Mary would have their estate taxes go from zero to $264,600.
The President, famous for using words to mask results, refers to this part of his tax plan as "closing the trust fund loophole."These two examples have nothing to do with the wealthy. The White House indicated that "99 percent of the impact of the President’s capital gains reform proposal would be on the top 1 percent." Although I find it highly unlikely that 99% of the impact would be on the top 1 percent, rest assured that literally millions of American homeowners, small business owners, and savers would be subject to the Obama tax plan.
Perhaps we should think of these American taxpayers as collateral damage.
Year after year, there are tax change proposals made by this Administration that have not been vetted with people who actually prepare tax returns or deal with real people. This Obama tax proposal is dormitory chatter; it is not well thought out legislation. At a time when Congress and the American people want to reduce the time spent with the Internal Revenue Service, enter the Obama tax plan. This Obama tax plan is another accountants and appraisers relief act. Every business worth more than $200,000 would need an appraisal at the time of death, an accountant to work through the payment plan and the follow-up payments over what could be a lifetime. And let's not forget the additional IRS employees and IRS appraisers to monitor what would annually be perhaps tens of thousands of additional tax returns.
Rather than 6500 or so wealthy taxpayers paying estate taxes every year, the Obama tax plan takes this number into at least the tens of thousands. And if one is a bit cynical, the possibility of taxpayers actually filing these tax returns for truly small businesses is not going to be one hundred percent.
Yet again - amateur night with the middle class as collateral damage.
If the GOP had any gumption, they would propose a wealth tax every time BO proposes a new tax on income.
Not because it is a good idea, but because they would turn the Fauxahontas wing against the Soros wing of the RAT party by shifting the debate.
” The Middle Class is not collateral damage. They are ObaMao’s target.”
Obama: “ The average family of four will save 2,500 a year”
Reality is they pay 4,000 MORE with ACA.
-6,500.00
And cost the middle class millions of full time jobs, or the job itself.
And increasing taxes on the “rich” will cost many more jobs
As soon as he pivoted towards the middle class, I knew we were going to get screwed. Everything he says he is doing “to help” has the exact opposite consequences. It’s either blithering incompetence or he’s a diabolical genius. (for the record, my cat could run the country better, but she IS a diabolical genius.)
This is just the beginning as it will play a role in the collapse of the dollar.
Where does the $200,000 figure come from?
The difference between the 1,345,000 value of the house and the taxes of 1,145,000.
Sorry, not taxes, the house loan of !,345,000.
I know he cost ME 30k per year.
Taht is damned sad.
THAT....the 30 grand shook me up.
Ah! I forgot about the loan amount!
Yeah, shook ME up pretty bad as well!
I can’t say enough epithets about the bastard.
Obama hates anyone who is successful. He hates freedom, economic mobility, prosperity, and liberty. And America, of course. Not to mention you and me.
To a communist if you are not poor, you are rich. We saw this happen before when Dems had power.
Dems goal is to have everyone in highrises riding public transportation.
Tney’d like nothing better than to outlaw private ownership of houses, guns, and internal combustion engines.
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