So, I guess now the Repukes will scuttle the Inheritance Tax. I won't be

[theophilus]

a bit surprised. This country is going down while the band plays.

[MikeFoxtroters]

1. I'm torn on this

I understand the need for collecting this high level of revenue but at the same time I find it very....I guess immoral for lack of a better word. A family member just died and the government swoops in and takes 50% of their life's work before the family gets a penny of what the person worked a lifetime to provide them.

[theophilus]

2. I look at it as Buffy and Trey have to pay tax on what Daddy passes on. Maybe I'm wrong but

the heirs have done little or nothing to earn this money, for the top money hoarders, so I think they can give up a share. Maybe someone can clarify if this is wrong. The dead don't care about taxes.

[Deep13]

4. No, sir, that's not how it works.

We're not talking about what an ordinary person leaves his family. We're talking about vast estates that create a perament, inherited aristocracy, something the revolution was supposed to have done away with.

[MikeFoxtroters]

7. 55% of $675,000 and above

is what it is set to revert back to. I'm not sure how $675k divided amongst siblings or even to one person constitutes an aristocracy. I'm also not aware of the revolution you are referencing unless you are referring to the American revolution in which case I'm just going to laugh at you.

[Deep13]

10. We've only had one revolution.

Laugh all you want. The rich have screwed you as badly as they have screwed the rest of us.

[Gormy Cuss]

12. It's not a flat 55% rate for every dollar over 675K & because of credits estates under 1M don't owe

anything. Even when the estate tax does kick in it's graduated up to the 55% rate.

That said, most in Congress would agree that the threshold for estate taxes is too low. The reason the law is reverting is because of the MOCs who think ANY estate tax is too much.

[MikeFoxtroters]

14. the estate tax is not

graduated. It is a set percentage on any inheritance above the determined amount. When it expires it will be 55% on everything above $675,000.

[Gormy Cuss]

15. (1)unified credit makes the minimum taxable level 1M , (2) estate tax pre-2001 was graduated.

See here, Table 1 :
http://www.cbo.gov/ftpdocs/108xx/doc10841/Estate_GiftTax_Brief.shtml

If you are aware of a reliable source that contradicts the CBO please cite it.

However, even under a law where 55% of every dollar over 1M is taxed at 55% an estate of 2M would have an effective tax rate 27.5%.

[lumberjack_jeff]

6. Taxes suck.

Why is it less immoral to tax the wages of a person instead of their inheritance? If taxes are punishment (a debatable proposal) then I'd rather punish people for not working.

If I earn $35,000 this year building boats, I'm taxed 15% + income taxes. If I earn $3.5 million, I'm taxed roughly $1m. If I inherit $3.5 million... no tax. The tax code is written by people who don't work for the benefit of people who don't work.

Unearned income is taxed essentially not at all in this country, and the result is unemployment and wealth concentration.

Better to simply end the estate tax and tax it as income for the recipient just like earned income.

[MikeFoxtroters]

8. I could go for that

tax it as income at the already established rates.

[lumberjack_jeff]

11. Bear in mind...

The first dollar of inheritance would be taxed at income tax rates. No $675,000 standard deduction. It'd be a big windfall for society.

[nadinbrzezinski]

13. This is in an effort NOT to create a new form of nobility

the Founding Fathers understood this. Modern Americans, not so much.

[Papagoose]

3. How many people actually pay the inheritance tax?

I am by no means an expert - I barely understand my own taxes - but I've always thought that people had a million ways around paying any inheritance taxes with a little planning before death.

I could be completely wrong...just curious.

[Deep13]

5. Well, that's for the probate estate...

...but there is nothing preventing Congress from taxing non-probate assets like trusts.

[Gormy Cuss]

18. Typically less than 2% of estates owe the tax.

In 2010 of course none of them will.

There are many ways to lower the liability through gifts during life --for example, you can give someone 13,000 per year without owing a gift tax, up to a lifetime limit. Another common way to lower the tax is through charitable donations and trusts.

[ladjf]

9. The Republicans will enact all of our worst nightmares and the

President is unlikely to wield his veto power. nt

[Execlib]

16. Even Bill Gates is giving a lot of his wealth away.

I'm sure his offspring won't want for anything though. It's a tough call. As a child I remember reading about a family business that bellied up because they couldn't pay estate taxes.

It was a small deli that was always busy till the old man died. The family couldn't find a buyer.

[Hannah Bell]

17. scuttle? this year there *is* no inheritance tax. that was part of the bush tax cuts,

effective this year.

they're going to get it extended.

[Matariki]

19. Don't worry. They'll make up for it by ending mortgage tax deductions.

And anything else that helps the middle class.