"Yessir!"
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 ...
Yà can’t take it with ya.
Obama wants to make sure of that.
What a crook. Guess he needs all that tax money to pay for his amnesty and free community college Santa Claus programs.
Obama knows these have zero chance of passing. What he’s trying to do is to goad the GOP into doing something that the MSM can portray as being evil.
I don’t think I can watch tomorrow night. Unless I stop at the store today for a bottle of wine.
All the clapping and standing O’s by the D’s will be enough to make me sick.
We saved for our kids college. Like you are suppose to do.
"Yessir!"
Obviuosly his proposals ain’t going nowhere, so I wonder what his goal is in doing this. I guess it must be to put the repubs on the defensive?
The idea is to bypass the exemption.
When the estate is valued, full market value is used to check against the 5.3 million exemption. Anything over is taxed at 40%.
So, passing on the original value is the same as destroying the estate exemption.
All the clapping and standing O’s by the D’s will be enough to make me sick.
ABOUT A WASH TUB FULL.
Obama promised us that just the Romney rich would pay for Obamacare.
I see zero chance of this passing.
Any Congress Critter voting for this, if not in a safe seat, is a “dead man walking”. But even then...
Any time I hear him say tax the rich, my wallet screams, and I’m sure as hell not rich!
” Under the Obama plan, you have a capital gain of $110,000 (sales price of $120,000 less original basis of $10,000). “
—
There would still be no tax.
.
Wine???
I’d need a big, 1 gallon corn stopper jug of High Test Appalachian Hill Moonshine.
BTTT
Elimination of inherited wealth is one of the planks of the Communist Manifesto.
Hey I just laid in two bottles of 180 proof rum and a couple pounds of popcorn. But I think I will read a genealogy book on the family tree of Charlemagne instead. Of course I can still lose myself with the rum.
A stubborn remnant of the American middle class remains after all his work.
This tax on their employers and estates will, he hopes, finish them off.
The individual exemption for the estate tax is something like 5 million dollars. Unless that changes, I don’t see what this article is about.
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