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What is your objection to the death tax? If it is principle, that is, one shouldn't be taxed again on money that has already been taxed, then you should be against the Dem version. If one has earned and paid taxes on income, why do they need to pay more taxes just because they died?

This money is not being taxed on death, but as income to the beneficiaries of an estate. A significant portion of the value of all estates, and a majority of the value of the largest estates, have NEVER been subject to either the income or capital gains taxes even once. Most of this income is and has been sheltered between the generations. The estate tax completes the income tax; much of it is applied to money that has never been taxed as income in the first place. --from njnonprofits.org

And if you just think that a certain amount of money is "enough", well, $7M isn't a lot for a farm or business these days, and there is no COL provision in the Dem bill. $7M will be even less in 10 years. Most people would like to leave their entire business to their children.

In 1998, only 1.4 percent of the taxable estates included a farm that accounted for at least half of the gross estate, and only 1.6 percent included a small business. In estates valued at less than $5 million, farms and small businesses accounted for less than 4 percent of the assets. Right now, only 6 out of 10,000 people who die leave a taxable estate ($675,000 or more) in which a family business or farm forms the majority of the estate.
Current law also provides for higher estate tax exemptions for farms and family-owned businesses. The exemption for most estates that include such a farm or business is $1.3 million. A couple can exempt up to $2.6 million. Also, beneficiaries can defer the payment of estate taxes on businesses or farms for up to 14 years if the value is at least 35 percent of an estate.
--from njnonprofits.org

And, I might point out that if small businesses and family farms were a priority concern, there was a Democrat proposal which according to this article "gained 44 votes" and "would have added permanent relief for all family-owned farms and small businesses."

Now speekinout, I realize it's a bit much to post this anti-estate tax repeal information on Free Republic. But here's how I see it. I don't really know how many people are affacted by the estate tax. I don't know how many "family farms. I know that in Georgia, for instance, the average family farm is valued at 600K, which is well below 7 million. I know that most of the small businesses listed for sale go for less than 1 million. But I don't have well established, scientifically collected data. So how do I know that Phil Gramm or Don Nickles is telling the truth?

Isn't it possible they might be fudging the facts? And what would it mean if the people who represent us, our party, the GOP, learned that we are ignorant people, that we will swallow what they feed us because we believe whatever they say and nothing the Democrats say. What would that mean? It seems to me it would mean that the GOP would be unaccountable. The people who need to hold them accountable are the people who DO vote for them, not the ones who don't. Same goes for the other side, the Democrats. Blind allegiance is foolish.

So, you can go on adhering to your principle that "it's your money" if you like. It's a nonsensical idea, in my opinion. Of course it's your money. Since when do you get taxed on someone else's money? Tax policy is a battle for power, and that's all it is. And I would be ashamed and embarassed if Phil Gramm or Don Nickles or Kent Conrad or Hillary Clinton could come on FR, and see that people are blindly following whatever they are told without even checking the facts, or looking up the data, before taking a position. It is embarrassing. But then, if you've ever heard Sean hannity's man on the street interviews, I guess you will agree that the national constituency is already an embarrassment.

My father started out with nothing. When I was a small child, we lived in a 3 bedroom trailer home. Well, he worked his ass off. Sometimes working 120 hr. weeks! My father has worked harder than most people EVER work in their entire lives! He put EVERYTHING he made back into his farm. Now he has a family farm with assets in total of well over $7,000,000. PLEASE TELL ME EXACTLY WHAT RIGHT THE GOV'T HAS TO STEAL THIS UPON HIS DEATH?!?!? I don't need your sorry "if it doesn't affect me why should I care" ass coming in here and telling me that this does not affect ordinary people. My father's lifetime of hard work is wrapped up in that farm and the Gov't has absolutely no right to STEAL it when he passes away. And that BS about the money never being taxed in the first place is SIMPLY NOT TRUE!! Also, my two brothers now help run this farm. Should they have to sell off half of the assets upon his death in order to fork over a healthy check to the Gov't? What right does the Gov't have to confiscate this property? This farm should be kept in the family to support future generations. That is why my father has worked so hard, damn it!! Funny thing is, my father is not even "rich" as far as cash flows go. He is comfortable, but most everything is wrapped up in assets required to sustain the farm. They make a nice income on which they support my Dad, Uncle, and two brothers and their families but MOST of the income is put back into the farm. That is how the farm got so large in the first place (that is how a business grows, but what incentive does such a tax gives to inspire such hard work). Since they are going to BE PENALIZED for it, I guess they should just spend it as they make it.

You are obviously very ignorant about farming. It does not take much for the assets of a farm to be above $7,000,000. Land is valued at about $1,500/acre around here. Thus, you only have to own about 5,000 acres. Throw in a few $300,000 tractors and a couple $500,000 combines and all the other equipment required to operate a farm and it doesn't take long to get well above $7,000,000 in assets. Keep in mind those are ASSETS not cash so where exactly are my brothers supposed to come up with the big fat check the Gov't is going to request upon my father's death? Yup, you got it. I guess they will just have to sell off some of their livelihood!!! How ANYONE can defend that is beyond me.

But I guess those farmers don't deserve it. The assets should be sold so the Gov't can give it to the have nots. After all, they are the one's who were out there slaving away in the heat and humidity sometimes for as long as 18 hrs. a day.

People like you make me so angry! It is the principle of the matter. It does not matter if it affects you personally or not. This tax should repealed because it is unjust, unfair, and UNAMERICAN!! PERIOD! Hard work should be rewarded not penalized. I am so sick of this kind of crap!

Okay, rant over.

There is a big difference between income and assets. We don't tax assets. If we did, you would be paying taxes on the value of your home every year. That gets taxed as capital gains only when you sell it. We long ago decided that widows (and widowers) did not have to sell their homes when their spouses died. So why should they have to sell the farm or business? The only time assets are taxed is at death.

And should the children be forced from their home just because a parent died? It's the same thing to say they should lose the family business and their source of income.

I don't know if your numbers are right or not. But would you think the numbers mattered if the law affected only you? Fair is fair, no matter how many people are affected.

I agree that we shouldn't be blind to party politics. But the "soak the rich" mantra is the most poisonous of all.

My favorite example of how this death tax is wrong has to do with the Wash. Redskins. Jack Kent Cook couldn't leave the team to his son, John, even though John had run the team for years. He thought he had managed to leave John enough money to buy the team. Alas, that didn't work. Now the team is owned by bratty danny. And it hasn't been the same since. If the tax laws had allowed John to keep the team, a lot of us would have been happier.
And the amount of money the Feds got from that disaster probably financed maybe 2 minutes of the gov't.

We do tax income, but if you want to tax assets, be consistent. And tax assets every year.

You couldn't be more wrong about almost everything you've posted.

But you do say it with conviction. That's what the democrats do too. They lie with a straight face, and some people believe it.

You say the death tax is just an income tax to the heirs????

Wrong!!!!!!!

I'll give you an example. Try to understand this.

After the exemption there is an estate of 6 million subject to this death tax. The gov. wants to steal about half of that.

What if there were 10 heirs? Do you think they would each pay income tax on 600 thousand each....@ 55% rate??

What if one were in a low bracket, and one was a multi-milionaire?

Income from inheritance is not taxed by the government. The estate is taxed.