General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWorse than the low rates for capital gains, how about 0% tax for earnings on dynasties?
This is fascinating. We all have heard about the estate tax exemption increasing to $11 Million per person. But according to Mother Jones, it also includes a step up in basis.
A WHOLE LOT OF INCOME FOR WEALTHY PEOPLE WILL NEVER BE TAXED.
So if you have SO much money that you can buy millions in Apple stock (or whatever) and keep it until the next generation inherits it, they are never going to have to pay tax on that gain either. Even when they sell it, never any tax on the gain that occurred before your death.
http://www.motherjones.com/kevin-drum/2017/12/six-things-you-might-not-know-about-the-republican-tax-bill/
The estate tax exemption was raised to $11 million per person or $22 million per couple. You probably knew that. But theres more.
First, that exemption amount is now indexed to inflation. When it comes to things like the minimum wage, Republicans flatly refuse to consider inflation indexing. But for millionaires and their heirs? Why of course we have to index.
Second, the bill provides a truly massive and inexplicable gift to heirs of the rich. Suppose you inherit some Apple stock thats increased in value from $1 million to $30 million. Donald Trumps 2016 campaign tax plan would have exempted the first $22 million, but then youd have to pay capital gains taxes on the remaining $8 million. In other words, you had to pay taxes on something. Not anymore, though. Not only has the estate tax been eliminated for estates under $22 million, but the Republican bill keeps the current step-up law, which means assets are automatically revalued upon death and no capital gains taxes are due. If dad sells off his holdings himself, he has to pay capital gains on the profit. But if he dies and you sell it, youre free and clear. Even the biggest proponents of killing the estate tax never imagined a gift this brazen.
So who wanted this, anyway? You dont have to ask, do you? This has been an obsession of the ultra-wealthy for decades. They have long loathed the fact that they cant control their fortunes even in death, and they loathe it even more that the federal government will get a cut of their hard-earned riches. With this tax bill, they have almost reached their goal of eliminating not just the estate tax, but taxes of any kind on their accumulated wealth.
lostnfound
(16,162 posts)And died...no tax. Gain in value is never taxed if the asset is held upon death.
Horizens
(637 posts)An aristocracy of the rich is no less evil than an aristocracy of birth.
T.Roosevelt