Inheritance taxes?

O

Oleg Volk

Staff Alumnus
John Ross mentioned in his book that the office collecting state taxes has not broken even since its inception. Is that true, and if so, where could I find suporting info?

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Oleg "peacemonger" Volk

http://dd-b.net/RKBA
 
I recall that from the book, and it didn't ring true at the time.

Given the inflation in the values of houses and land, not to mention the size of many stock-market holdings, I'd expect the "tax take" under the present rates to increase by quite a bit.

There have been recent articles about the "loss" to Gummint if the tax was repealed. While I don't recall the number, it seemed a lot larger than IRS' budget dealing with it would be.

I get fed up with the BS about "only benefitting the Rich". The "Rich" set up trusts and suchlike where there are, essentially, no estate taxes. It really hits hardest on small business people, farmers and ranchers. Really, all those folks who have worked hard all their lives for the "American Dream". Funny; it doesn't hit the drones.

:(, Art

[This message has been edited by Art Eatman (edited June 15, 2000).]
 
Oleg, you're referring to the federal 'estate' tax. States often have 'inheritance' taxes ... there is a subtle distinction, and my memory is not accurate enough to explain. And, Art is right on the money ... the estate tax tends to hurt small business people the most.

As I recall, it is not really a big revenue raiser for the fed's, but I don't have the data. But, do some research on the 'net, and you should be able to find the data. I tried the AICPA (American Institute of CPA's), and the Financial Executives Institute (FEI), but no cigar. Try the AARP - they might have some research available.

Regards from AZ
 
Jeff,

A death tax is a death tax, no matter what the difference is between the fed and state names for it.

It's not supposed to be a revenue raiser. It's supposed to be a way for the government to take money from the family of someone who had it and spread it out to other folks. (Can you say "communism"? I knew you could.)


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ACHTUNG! ALLES LOOKENSPEEPERS!

Das Internet is nicht fuer gefingerclicken und giffengrabben. Ist easy droppenpacket der routers und overloaden der backbone mit der spammen und der me-tooen. Ist nicht fuer gewerken bei das dumpkopfen. Das mausklicken sichtseeren keepen das bandwit-spewin hans in das pockets muss; relaxen und watchen das cursorblinken.
 
The federal estate taxes spend about two thirds of the revenue they collect on compliance and collection costs. The actual net effect on the treasury is neglible. The intent of the law has always been to redistribute wealth. Most people who are aware of their worth will either incorporate the wealth of place it in trusts. Where folks get stung is when they are unaware of how much they own. For example, a business or farm can easily be worth over $675,000 even if the business or farm is not particularly profitable. That is wealth but it is not easily liquidated. When the bill comes due the heirs must often sell part of the inheritance to cover the taxes. This can destroy a business and often does. These taxes are a bad idea and should be repealed.
 
I am in the "Family Business" situation. Somehow we have managed to keep it together over 162 years & 6 generations by selling & gifting off to a family member before dying. Thank god none of us have died unexpectedly. If that ever happened the company & all employees would be in trouble. Once our friends at the IRS get a value of the estate (& this has to be done quickly) the taxes have to be paid, IN CASH, in 60 or 90 days. Trying to raise the cash or find a buyer under those conditions is not favorable to getting the best price.

So even if you sell at a reduced price to pay the taxes, the taxes are based upon the higher amount. If you borrow to pay, that burden is then placed upon the family or company! Is it any wonder that because of this outrageous tax, 70% of families choose
to cash out or abandon their business after just one generation. And only 13% survive into a third generation.

The reality is, people can't afford to pass on their business. They sell out, letting long-time employees go. Not because they want to. But because they have to.

Here's a great site to learn more http://www.deathtax.com/
 
I cannot stand the concept of the death tax. That every generation of Americans be subject to lose of inheritance in their time of grief is... unjust, to say the least.
 
Just like the Inquisition, the IRS now has a financial incentive to cause unexpected demises in order to collect more death taxes...any wonder that their pals in the ATF are so eager to murder people lately?
 
papercut, did I give you the impression that I established these taxes? Or support them?

If you want to get irritated with someone regarding this subject, why don't you contact your Senator and Congressman, and tell them to dump this tax.
 
Jeff,

No, you didn't give me that impression. It's just that you sounded like an accountant (I have a family full of 'em) explaining the system in that dry accountant way.

No offense intended with my original reply.



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ACHTUNG! ALLES LOOKENSPEEPERS!

Das Internet is nicht fuer gefingerclicken und giffengrabben. Ist easy droppenpacket der routers und overloaden der backbone mit der spammen und der me-tooen. Ist nicht fuer gewerken bei das dumpkopfen. Das mausklicken sichtseeren keepen das bandwit-spewin hans in das pockets muss; relaxen und watchen das cursorblinken.
 
Go to www.vote.com and vote for repeal of thes estate tax. The web will send your vote to Klinton and your congressmen. Question:how do you make the links active so people only have to click on them? Duh,ignore that last question please, it wasn't really asked, you just misinterpreted, it will go away soon.....

[This message has been edited by swampy (edited June 16, 2000).]
 
Does anybody else here think that estate taxes are rather ghoulish? While no tax is really ever a good thing, there is something extra reprehensible about any government showing up to take its cut of money/property transferring from the decedent's estate to the survivor.
 
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