RadioDoc
Sortofadog
Premium,ExMod 2000-03
join:2000-05-11
Chicago, IL
 ·AT&T Midwest
| reply to Plldwnyrpnts
Re: ....so?
Those family members (estate beneficiaries) do not pay taxes on what they receive. It has already been taxed at the estate level. The rate is 45% of the estate's net worth over $2,000,000 for last year (TY2006) through tax year 2008. The exemption amount is $3.5 million in TY2009 and in 2010 it is phased out entirely, assuming that Congress does not change its mind before then.
You would me amazed how easy it is to hit $2 million...
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Toolmaster of La Grange.
Save the Pacific Northwest Tree Octopus! |
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MooJohn
join:2005-12-18
Milledgeville, GA
·Windstream
| What shocks me the most is not that you're taxed after the first 2 million but they think almost half the estate is a fair tax rate!!!!
Someone who's running a successful business (or farm, or medical practice, etc.) dies and leaves their holdings to family. HALF of it is gone from the start since most people's attitude is "they have millions; they won't miss some of it." I can't think of any business that can continue to run successfully after being chopped in half thanks to the death tax. If this same tax was levied on all estates, imagine the uproar!
The people that earned these millions paid taxes (in the highest bracket, I might add) when they were earned. Why should it be taxed again when it is left to family?
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John M - Cranky network guy |
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RadioDoc
Sortofadog
Premium,ExMod 2000-03
join:2000-05-11
Chicago, IL
·AT&T Midwest
| The purpose was to pare down the Rockefellers, Morgans, Vanderbilts, Carnegies and other so-called "robber baron" families at the turn of the 20th century and made some sense back then. Today it's just a huge tax honeypot which attracts every type of politician. Ayn Rand was right.
Speaking from personal experience, that tax check was the largest I've ever written. Well into six figures. It was more painful than a root canal.
--
Toolmaster of La Grange.
Save the Pacific Northwest Tree Octopus! |
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