Who Benefits From Repealing the Estate Tax?
Lots of folks incorrectly think that their families will benefit from repealing the estate tax. The federal estate tax only gets levied upon folks with:
- An individual estate worth at least $5.5 million
- A couple's estate worth at least $11 million
- This impacts about two out of every 1,000 families
Remember, the estate tax exempts the first $5.49 million (or $10.99 million for couples).
If you're reading this right now, you probably don't need to worry about your kids or grandkids paying this tax.
Even though very few people have to pay this tax, the government will get about $19 billion from the estate tax this year.
Source: http://fortune.com/2017/04/27/trump-tax-plan-estate-tax/
To put that number in perspective, the government will collect about $3 trillion from all taxpayers this year. When you compare a few billion against trillions, the amount seems small. On the other hand, to most of us it looks like a significant amount of money that could help subsidize a lot of school lunches, housing for elderly people, and maybe some sustainable energy efforts.
Are There Any Arguments in Favor of Repeal?
The only argument that I've seen in favor of repeal that makes sense deals with small business owners who may have millions of dollars tied up in their companies and not really liquid. IMO, this might be addressed as a different issue. Nobody wants to see businesses getting liquidated to pay taxes, but I'm not sure how often this happens. It seems like those business owners could hire a good accountant to do some tax and estate planning.
What do you Steemers think?
For those who live in lala land and think that any country can exist without tax system.
Any country is compound of people ( labor and production power), land(resources) and a life management system. If one is missing we have no country.
The life management system is called, governing system. The body who does governing is called government. Those who hate government can change the name if they choose to but they can’t eliminate the concept.
Part of this system is the tax subsystem which is who, when, where, how much and how to do tax Q&A. Those who hate taxes can change the name if they choose to.
Instead of chasing labels let us talk about concepts and mechanisms and how to improve them.
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For those who live in lala land
always the personal attack isn't there?
why is that?
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We breath the same air. We have different opinions. Nothing is personal. My all respect to everyone including those who hate government. Keep in mind no language is perfect to convey what we are thinking the way we wish to express it. Misunderstanding can sky rocket if emotions get in the way.. I apologize If I caused any discomfort.
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discomfort?
no..not really.
You just blew your credibility with me all to hell.
Doesn't bother me a bit.
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Ask Warren Buffet. Berkshire Hathaway owns companies that provide insurance to keep small businesses from going belly up when this happens. They also have bought out family businesses when this happens to either add to the portfolio or sell off the parts.
You know who is a big supporter of the estate tax? Yup, it is Warren.
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How is this fair though? Do we really need a tax on individuals who are receiving an inheritance from the rich relatives? I may not understand it correctly, but I doubt it will have much of an impact on taxes generated because I'm sure most people with this kind of money have enough accountants and lawyers that know all the loopholes to get around it.
As you pointed out it's probably those who've built a business, but have little money and can't afford the fancy accountant and lawyers that it hurts the most.
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You make a good point that changed my perspective. I think that many of us only see the repeal as benefiting the idle rich, but the problem with family businesses does change things. It's easy to see how a farmer or small business owner could have a lot of $$$ tied up in a business but not really feel rich.
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the estate tax is why so many farmers LOOSE their farms. When the old man dies the kids can't pay the tax...and they loose it.
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taxation is theft...
I've never seen a tax that I didn't hate.
so yes...repeal it.
repeal ALL taxes.
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Yeah, but who pays for cops, schools, roads, etc.?
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that is SUCH a tired argument...it's been answered hundreds if not thousands of times and yet..
people don't listen and keep asking it again and again as if it's a reasonable question
once again.
private security.
private schools
toll roads.
etc.
If you USE it..then pay for it..(use fees) .If you don't use it you don't pay.
seem fair enough?
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No, it sounds like a dystopia where poor people have no chance of an education. And how are you going to privatize highways? Your condescending tone tells me all I need to know about you.
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Highways? I just told you...toll roads. I drove over three million miles in the last thirty years in every state in the union. Toll roads are the best maintained.
I live in an apartment complex...guess who built the roads? (hint..not the state)
Today with internet, effectively free in many cases...an online education is ...wait for it....effectively free or at most very low cost. (my daughter in law got an accounting degree that way..she works at a bank right now.
In the age of information...ignorance is a choice...anyone can find anything they want to know with very little effort.
Update: there ARE no poor people in the United States.( except for some with medical and mental conditions that prevents them from working) There are, however, a great number of people who have mad bad decisions and are deeply in debt.
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