Saturday, December 19, 2009

2010 Could Be A Good Year To "Off" Grandma...

Since Congress has been kinda busy lately, there's a chance that the "inheritance tax" (hereafter referred to as the "death tax") will temporarily expire in 2010, providing an added incentive to hide Grandma's medicine or maybe to remove those little rubber sticky things from the bottom of her shower.

The Death Tax is an absolute favorite among Dems. They simply abhor the thought of inherited wealth, and are all too happy to redistribute the leavings of estates to the general funds of the US. Republicans on the other hand, aren't too happy with the Death Tax. They see--rightly--that the assets passed along in an estate have already been taxed--either as income, interest or capital gains held by the decedent.

Here's the lay of the land from the article: "Currently, the value of inheritances above $3.5 million for individuals and $7 million for couples are taxed at a 45 percent rate by the federal government. Smaller estates are exempt from the tax, leaving less than 1 percent of all inheritances subject to the tax. Because of the lack of action by Congress, the estate tax now goes away only to reappear in 2011 with a higher, 55 percent rate. "

That's right, folks. Nearly HALF of any estate about $3.5M goes to Uncle Sam CURRENTLY. If Congress does nothing, these estates would be untaxed in 2010, then the rate would go to 55% in 2011. I suppose there are alternate views of what "fairness" is, but I don't consider it fair for a man and woman to work hard their whole lives to create wealth (paying taxes along the way) only then to have Uncle Sugar step in and scoop up half of it for his coffers when they die. Libs/Dems would have you believe that "it is ONLY the top 1% of estates" that would fall under this tax. So I guess that makes it fair. By this logic I suppose (or an extension thereof), the gubment should be able to take ALL of the money--why leave any of it?


Dan said...

You know the saying, "You can't take it with you."?

Might as well change it to, "The Gov't can take it from you."

"The Hammer" said...

Do as the Kennedys did, incorporate your family trust in Fiji and then scream "I'm a progressive". No IRS agent will ever come knocking. Of course if you're an Iowa farmer with a couple of hundred acres that have been in the family for 125 years, and you work your ass off on the farm to make about 80 grand a year, well you've got a problem. You're a multi-giga millionaire. So when Dad croaks, sell the farm baby and go get a job at the John Deere factory in Sioux City.

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