Let's talk about the Estate Tax:

[originalpckelly]

Per 26 USC 2001, here is the amount you must pay in taxes for every amount transfered:
"Not over $10,000 18 percent of such amount.
Over $10,000 but not over $20,000 $1,800, plus 20 percent of the excess of such amount over $10,000.
Over $20,000 but not over $40,000 $3,800, plus 22 percent of the excess of such amount over $20,000.
Over $40,000 but not over $60,000 $8,200 plus 24 percent of the excess of such amount over $40,000.
Over $60,000 but not over $80,000 $13,000, plus 26 percent of the excess of such amount over $60,000.
Over $80,000 but not over $100,000 $18,200, plus 28 percent of the excess of such amount over $80,000.
Over $100,000 but not over $150,000 $23,800, plus 30 percent of the excess of such amount over $100,000.
Over $150,000 but not over $250,000 $38,800, plus 32 percent of the excess of such amount over $150,000.
Over $250,000 but not over $500,000 $70,800, plus 34 percent of the excess of such amount over $250,000.
Over $500,000 but not over $750,000 $155,800, plus 37 percent of the excess of such amount over $500,000.
Over $750,000 but not over $1,000,000 $248,300, plus 39 percent of the excess of such amount over $750,000.
Over $1,000,000 but not over $1,250,000 $345,800, plus 41 percent of the excess of such amount over $1,000,000.
Over $1,250,000 but not over $1,500,000 $448,300, plus 43 percent of the excess of such amount over $1,250,000.
Over $1,500,000 but not over $2,000,000 $555,800, plus 45 percent of the excess of such amount over $1,500,000.
Over $2,000,000 but not over $2,500,000 $780,800, plus 49 percent of the excess of such amount over $2,000,000.
Over $2,500,000 $1,025,800, plus 50% of the excess over $2,500,000."

Now there also happens to be an exemption that prevents anyone with an estate under $2,000,000 from paying taxes, AT ALL. For a couple, the exemption level is $4,000,000.

Poor multi-millionaires. :cry:

Now honestly, I want to see that language removed from the law, and Democrats could run on actually removing the tax levels language from the law, as a counter-point to the Republicans wanting to just increase the level of the estate tax exemption, and the reduction of the rates.

[WCGreen]

1. For one thing.....

That is the Gift Tax....

And the amount of tax free money allowed to be transfered per year per transferee is $ 15k...

The Estate Tax should be eliminated...

As long as the bumped up basis provision is eliminated as well....

Otherwise, it should be made more inclusive...

[Rosemary2205]

4. self delete, wrong location

[originalpckelly]

10. No, that is the estate tax:

http://www.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00002001----000-.html

"(a) Imposition
A tax is hereby imposed on the transfer of the taxable estate of every decedent who is a citizen or resident of the United States. "

[WCGreen]

14. The Gift Tax falls under Estate Tax Provisions....

It's a section that calls for tax on money gifted from a potential estate in order to get around paying taxes....

You are allowed to get 15,000 per year from someone who has you as a benificiary in their will...

You can gift, tax free, upwards of 75k...

[genie_weenie]

2. I was just going to post on this.

It's tough to pull people attention away from Israel. ThinkProgress has an article about the plan to raise the minimum wage $2 but only if it’s coupled with a cut in inheritance taxes on multimillion-dollar estates...

http://thinkprogress.org/2006/07/28/house-conservatives-2-for-workers-but-only-if-paris-gets-millions/

[TheFarseer]

3. I think it should just be taxed at the tax payer's

marginal rate. A threshold of 2 mil (4 mil for a couple) seems reasonable. You might want to index that to inflation. I also think cap gains and dividends should be taxed at marginal rate. I would also like to see a threshold for that. How about $200 of investments in a savings account, CD or stocks and bonds is exempt(?) Why is it wrong for me to work for a W2? but inheriting money and collecting dividends is worthy of a tax break? The government needs to stop telling me how to earn a living. It's all just different forms of income, tax it like income!

[Lefty48197]

12. That's part of their master plan:

They like to separate inheritance money from earned money, in the hope that they can cut the tax that benefits themselves (the very rich) and leave the income tax where it is. That's also why they fight so hard to cut the top tax rates. Similarly, they have separated dividend income from regular income. Then they campaign by saying, "We MUST cut the dividend tax, so that we don't discourage people from investing in more jobs". Yeah, investing in more jobs. Investing in multi million dollar mansions, and Rolls Royces more like it.

[Rosemary2205]

5. The move on the "fair tax"

It's not just Boortz and his cabal anymore. They have at least 50 R Congressmen and a dozen senators on board - so it's growing.

They want to destroy pretty much all federal taxes and replace it with a 23% national sales tax on every single everything. Supposedly the cut in costs to companies for tax compliance coupled with the 7% they pay toward everyone's SS means all employees will immediately see a 20% raise in their paychecks.

I think it's more like most employees will see no raise and the highest execs and primary stockholders will reap billions upon billions.

[rzemanfl]

6. Here's my plan. A free pass on the Estate Tax for anyone

willing to live on the minimum wage for a year. They don't have to work for it, just live on an amount equal to it, which not nearly as hard as poor people actually have it. They have to move into low-income housing, give up golf, country club, travel, restaurant eating, etc. for one full year. Taxes and maintenance on their primary residence(s) can be paid out of investment income, but they have to live elsewhere on $10,700 for one year for food, housing, transportation and everything else. If they can't do it after they start, the tax doubles, if they are caught cheating the tax triples.

[JHH]

7. What is the logic of this tax just to tax the rich when they die?

This tax is a red hearing, most americans want to be rich some day and feel it is unfair to tax just the rich (them selves in the future) Just before an election is not the time to give the Repuks the argument the we are the party of "tax and Spend" instead we should point out that the Repuks are the party of "Spend and Spend" creating a huge debt for our children.

[WCGreen]

8. It's not taxing the rich....

It's taxing income...

Why should the income derived from inherited wealth be tax free while every dollar earned in wages is taxed...

Learn what you are talking about before you toss out slogans....

[JHH]

9. "Learn what you are talking about"

it is not a tax on income it is is not payed by the recipient of the estate but it is payed by the estate of the person who passed away. And only "the rich" have to pay this tax when they die.

[WCGreen]

15. It should be paid by the recipients....

after it is distributed and treated as income...

Whether that income derives from rents, interest, dividends or capital gains....

[JHH]

17. Saying should does not make it so

you said "It's taxing income...Learn what you are talking...." I was just trying to state how the law works now

[Yupster]

19. I paid it when my aunt died

I sure ain't rich nor were any of her other 30 benefactors. The dog adoption shelter sure wasn't rich.

Yet we all got lesser shares because the government took $ 180,000.

The estate tax back then was $ 600,000. If my aunt died today we would not have had to pay it, but if Bush's tax cuts are rolled back, the limit will go back to $ 600,000 hich in my opinion is too low.

I'd go for a compromise of $ 3-5 million with an index for inflation.

[Lefty48197]

11. Here's something on the secret financiers of the plan to repeal the estate

tax:

http://www.politicalaffairs.net/article/articleview/3396/1/167/

DeVos secretly backs a dishonest campaign to repeal the estate tax. Since 1998, the DeVos family has spent hundreds of thousands of dollars to help finance a campaign to repeal the estate tax, an effort led clandestinely by some of the country’s wealthiest families. They misleadingly claim that this tax affects millions of people, including family farms and small businesses. The truth is that only 1/4 of 1 percent of all estates will be subject to any estate tax this year, and these are owned by the richest families. Like many members of such families, Dick DeVos has never really had to work for a living, but rather was born into a family fortune estimated at $3.4 billion. (Public Citizen).

[LSK]

13. that is the Gift Tax, not the Estate Tax n/t

[Zynx]

16. Rates are too high and it's not indexed for inflation.

[etherealtruth]

18. I agree with you ...this is a tax that effects a small minority ...

... of Americans. It is a progressive tax which does tax those of significant wealth.

IMO repeal of the estate tax seeks to simply preserve the status of those of wealth and power. There has been significant research to show that "anyone can strike it rich" as the American dream ...is simply that : a dream. Regardless of education and hard work the odds of one rising above the socio-economic 'class" one was born to is very slim.

Contrary to ad's claim that "your family" might be crippled, the vast majority of families actually are not affected by the estate tax. In fact, less than 3 percent of deceased adults in 2002 had estates subject to the tax, according to the nonpartisan Urban-Brookings Tax Policy Center and figures from the IRS.


http://www.factcheck.org/article328.html