That's a seriously good idea for those like me who have more reading than they can keep up with. I finally got an iPod nano, and have been thinking of downloading a book or two on iTunes. It's not the same as reading, obviously, but it is a nice alternative to doing without while doing those things you mentioned. Keep D&D Civil.
He has not as yet paid the estate tax and as such, he has not paid all of the taxes due. All this talk about the estate tax is one more way for the wealthy to avoid paying their fair share in favor of shifting that burden to people who cannot afford to bear it nearly as much as they can. Greed, pure and simple.
To derail the thread a bit....we listen to audio books all the time. It's great. I got grandfathered in at audible where I get 2 books a month for $12.95. There is also a site named netlibrary.com which allows the FREE download of audio books. It is akin to a library where you essentially license the book for two weeks and then have to relicense it for two more (I think that's how it works). If you haven't finished in that time, then you have to redownload. The unfortunate aspect is that I believe you can only use windows media audio format. It is amazing how quickly you can get through a book on a simple 20 minute commute.
He gets a tax write-off for all those charitable contributions, too. I very seriously doubt that these rich folks want a repeal of the estate tax so that they can give more to charity. If you believe that, then I have some lovely beachfront property in Nevada that I would like to sell you.
Some do want the repeal so they can do more "good" with their money on their own terms. Not every rich person is a greedy jerk. Not every rich person's heir is a drugged out lazy bum.
And the other 99% of them are the reason that repeal is a bad idea. We need that money for our schools, for our parks, for our roads, and for the myriad of other expenses this government has. No, but the percentages of both are pretty clear.
I've only briefly skimmed this thread so pardon me if some of these points have been brought up already. I generally try to be cautious about taxation and its affects on the economy but the estate tax is one that I'm all for it on a philosophical basis. This isn't a tax on the productivity of someone that has ammassed capital through hard work but a tax that really falls upon the heirs who are gaining wealth for no other reason than because they are heirs. By getting that inheritance they aren't getting that money back through any productive action of their own and are under no honus to do anything productive with that wealth. An estate or inheritance tax is a tax like any other transactional tax and in my opinion much fairer than other transactional taxes since its not a transfer based upon a value added transaction. Its the equivalent of winning the lottery. I also don't buy the idea of double taxation because the estate tax is only enacted when you're dead. While you might've been taxed when you're alive once you're dead you're dead and unless you believe in a metaphysical way you live on in your estate or possessions you yourself are not being taxed. The main thing that makes me ideologically support the idea of an estate tax is considering the implications of an unfettered transfer of wealth from one generation to the other. Descendants who gain large amounts of unearned wealth again are under no responsibility to do anything productive with it. Given generations of that we could very easily end up in a situation that has destroyed many societies where an entrenched aristocracy arises living off of their wealth while adding nothing back. Yes its true that their are tax shelters and loopholes to exploit in the current estate tax but that at least forces the heirs to do something with the money. Without any of that someone could just take that money and sit on it without investing it. I agree that there are problems with the current estate tax as is and I'm not that knowledgeable regarding the specifics of the tax laws but I am very against the idea of doing away with an estate tax on principle.
Assume I am $5,000,000 over the threshold. If not for federal taxes on my income over the course of my life, I would be ~$9,000,000 over the threshold, but I have been a tax law abiding citizen all of my life and I have paid my fair share. I have 500 packets of $10,000 each sitting on my bed. I intend to go out tomorrow and give a packet to each person I see. I die overnight. the government swoops in and takes 200 of these packets. Why is that fair?
One other question...It's 2011 and the estate tax is back to the $1,000,000 exemption and the remainder is taxed at 55%. You have $2,000,000 in cash in your estate. Would you rather have ~$1.45 million to pass down to your children and/or favorite charity or would you rather have the full 2 million? Even if you only have 2 children, while $700,000 is a nice sum, it is certainly not enough for someone to live on the rest of their lives unless they make awfully shrewd investments. Call me greedy, but I'd rather have the full 2 million.
The way you put it, bobrek, maybe it's not. I just can't justify any tax cuts in the middle of a war, with record deficits for the foreseeable future. The estate tax brings in revenue that is not going to be replaced with another tax. We can't just keep cutting taxes while we sell our debt to countries like China indefinitely, in my opinion. Our currency is going to be in the toilet soon, at this rate. Countries are already making noises about using the Euro instead of the dollar for several financial dealings, such as buying and selling oil. That would not be too good for the USA. Guess no one buys my thought about a Federal Sunset Commission? Oh well, must be too esoteric. Keep D&D Civil.
This will not stand, nor was it meant to stand. Congress will fix this before 2010. If the Republicans margins in both houses decrease in 2006, Congress will get something pro-Republican to the President's desk before the end of his term.
Only anecdotal ones. Do you have any facts that would prove your assertion that the people who want to repeal the estate tax want to do so to increase their charitable giving? Only anecdotal? Thought so.
And I would rather have every dollar that my company says my salary is, but that is not how our income tax works. You are arguing for a tax break that will affect only the top 2% of households. How is that fair?
Exactly. Now is not the time to cut ANY taxes. If anything, we should be reinstating the taxes that were cut at the beginning of Bush's presidency to cover the massive debt we have been generating.
I challenge Ron Paul to tell us exactly how many farmers this affects. As a director of financial planning for a Fortune 100 company, Ive worked with high net worth clients for 8 years doing advanced financial planning. I can tell you that almost every person who has a real federal estate tax problem is not the poor farmer or the poor closely held business man trying to find $$ to save their family business. If the business owner wants to pass it to his children, he should do lifetime gifting. For closely held businesses, you receive a lack of marketability and lack of control discounts. This allows you to give more than the $11,000 present interest gifts per year. He can also do this while maintaining full control of the business. Also, he can set up credit shelter trusts to increase the amount exempt from estate taxes. Lastly, assuming the client is a US Citizen, he can use the unlimited marital deduction, so estate taxes only occur on the 2nd death which increases the years you can use the gifting strategy. If he feels the business will do gangbusters, he has a lifetime $1,000,000 gifting exemption available if the $11,000 (more for a closely held business) is insufficient. Perhaps he should inform himself first before making ignorant statements. Ridiculous.
But you didn't answer my question. I am not asking about income tax. The estate tax has NOTHING to do with income tax, because in the question, all income taxes, capital gains taxes, etc. have already been paid on every penny I have earned. [EDIT - additional comment] I am arguing for folks getting to keep the money they have generally worked hard for or gained through shrewd (perhaps lucky) investments that they have already paid income tax, capital gains tax, dividend tax, etc. on without having to pay an additional tax.
Again, this discussion has NOTHING to do with income tax. One of the main arguments against an estate/death tax is that income taxes have already been paid.
