Posted on 08/19/2021 7:00:06 AM PDT by Kaslin
I don’t see a problem with this personally;
You buy a house for $50K like 50 years ago, now it is worth $1,050,000 (million dollar appreciation).
If you sell it now, before you die, you owe taxes on it (minus the onetime lifetime exclusion if you haven’t already used it).
So pay the tax man on your appreciated assets, just like if you sold a long-term held stock.
What difference does it make if you still have debt on it?
Say you bought it for $50K, now is worth $1050,000, and at one point it was worth $1.5M instead, so you borrowed a million dollars against it and spent the money on crack. Should you be able to sell it and not owe any taxes? The fact that you (or the person you inherited from) chose to get a tax-free loan against the equity - and spent it - really should affect your tax bill.
I am all for reducing taxes in a fair way - but keeping loopholes in so that those fortunate enough to inherit wealth can get everything tax-free on things that were never taxed in the first place (i.e. the stepped up basis rule), only help a few rich/lucky people.
Cut taxes on income, cut property taxes, cut sales taxes before you start giving windfalls to heirs that never earned it in the first place.
Don’t be fooled by the ‘oh the family farmers...’, this is a loophole that allows the uber-wealthy to build dynastic wealth for generations at the expense of income earners who need to make up the difference.
“Create a Family Trust NOW!”
In Tampa area, any freeper have any local lawyers in mind ?
Can a Trust be drafted by the homeowner and filed without a lawyer ?
401k on the chopping block next. Too much money in the hands of the peasants.
Most with significant assets have already done so, so the actual impact of these absurd laws will be limited. But once the Left realizes there is no gold to be mined, they will likely try to go after trusts, also.
The Obama/Biden regime (for this is the 3rd term!) are determined to give new, and chilling meaning, to that old meme; “I’m from the government and I am here to help”! At this moment, the Administration is desperate to avoid the reprise of the 2008-10 Obama term where their control of Congress only got the Healthcare bill passed before the RINOs got back power in Congress. Right now, barring a more successful “bait & switch” 2022 campaign season, a more conservative legislature will make these proposals very unlikely to pass!
As much as I hate to say it, we conservatives must USE Biden’s epic idiocy with Afghanistan and, per Obama’s Chicagoan Chief of Staff, Rahm Emmanuel, “Not waste this crisis”!
They can change the allowed investments: "We'll take those risky stocks off of your hands - no American should have to gamble on his or her retirement! Your new Warren Federal Safety Net Bonds will pay you a GUARANTEED 3% annual return, with no more sleepless nights!"
Incorporate. Outside of the United States.
They have been eyeing our IRA’s for at least 10 years - probably longer. The massive spending and debt will create a crisis that allows them to take people’s savings because it’s “an emergency.”
I’ve said it before, and I’ll say it again. If they take my retirement money, I’ll just start robbing federal banks.
Either I’ll get my money back, or they’ll catch me and have to pay for my retirement anyway.
I can’t believe this will be passed, especially retroactively. It is immoral to change rules at the end of the game. Just like SS, no one seriously suggests cutting current benefits, only future ones, so that people can plan accordingly.
Forget the details. The intention is to take it all (except for the clintons, obamas, bezos, gates, soros).
This is another reason why they’ve deliberately ramped up inflation. (assets “appreciate” in inflated dollars, and are taxed on the “appreciation” even though it has little value.)
“...loophole that allows the uber-wealthy to build dynastic wealth for generations at the expense of income earners who need to make up the difference.”
Of course the current rules benefit the wealthy, and you can make the argument that their kids didn’t earn the windfalls. But you can make that argument for any level of inheritance, even for people of meager backgrounds.
Stepped-up basis also benefits Joe Middle Class, when he inherits his parent’s humble-sized paid-off house that they lived in for 50 years. He didn’t earn it either, but he’ll get his childhood home with no tax owed (other than keeping up with the property taxes, which is a whole other issue). But with the stepped-up basis gone, there’s a very real chance that he’ll have to unload the house to pay the hefty tax bill. And he may not have a house of his own for whatever reason. Biden’s plan would reduce the ability of regular families to pass on intergenerational wealth/property. Over time, most people will be renters to the govt/Blackrock their whole life with little tangible assets.
And I firmly believe they’ll find some way to get their claws in the IRAs too, using a whole host of excuses (covid, black reparations, etc.) Best advice is to not have all your eggs in one basket.
When I worked in Brazil back in the 90s I believe Lula was the new president and he established some terms for taxes and monetary policy. People down there said it was the first time in their lives they could plan.
Without stable tax policy, and we have none, you can’t plan.
Taxes to politicians are like reserve pits, the higher you raise them or the bigger you build them the more is spent or put in them. Or my wife and closets and drawers, the more you make she WILL fill them no matter.
Can you explain this from the post:
“Currently, an individual must have net assets in excess of $11.7 million to be subject to zero estate taxes. The proposed Biden capital gains tax at death proposal would subject individuals with net assets not in the same zip code as $11.7 million of net worth to very significant new death taxes.”
Does this mean that everyone with net assets less than $11.7 million ARE subject to estate taxes? It does not make sense to me.
The writer shifted from talking about the “estate tax” to talking about “income taxes” in the form of capital gains taxes.
bkmk
Dems do what dems do
Except it's not worth $1.05 million. It's valued at $1.05 million of overly inflated fiat dollars, brought to you by the same government that calls it an increase and wants to tax you on it.
BKMRK.
Oh yes they will! The SSA says, by 2035, if nothing changes, SS payouts will be only at 75% of current value.
So if you are getting $1000.00 now, in 2035, you will be getting $750.00.
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