How to Fix Social Security

[saden1]

Originally Posted by FRPLG

I gotta say this is the first time I have ever heard someone make an argument to strengthen this tax.

My support for the "death tax" is based on a singular principle of fairness (not from your point of view I am sure). It's my belief that one shouldn't receiver tax free money even if it's coming from their parents. I see parents leaving money for their children as a form of payment and every time I get paid uncle sam takes his cut so why shouldn't he take a bite out of inheritance? Simply put I would like to see the money treated as if it were income and taxed progressively.

I suppose it should be noted that I have no intention of leaving my kids a windfall.

[FRPLG]

Originally Posted by saden1

My support for the "death tax" is based on a singular principle of fairness (not from your point of view I am sure). It's my belief that one shouldn't receiver tax free money even if it's coming from their parents. I see parents leaving money for their children as a form of payment and every time I get paid uncle sam takes his cut so why shouldn't he take a bite out of inheritance? Simply put I would like to see the money treated as if it were income and taxed progressively.

I suppose it should be noted that I have no intention of leaving my kids a windfall.

It already is taxed as income essenitally and taxed pretty damn stiffly,

Oh and I am glad I am not your kids I guess.

[saden1]

Originally Posted by FRPLG

It already is taxed as income essenitally and taxed pretty damn stiffly,

Oh and I am glad I am not your kids I guess.

OK, so what's the real difference between leaving your money to a total stranger vs leaving it for your children? Suppose I leave the money to someone that isn't my child? Should it be taxed? Should preferential tax treatment be given to your own kids?

I'm sorry but passing down wealth without taxing it is akin to a pyramid scheme. People at the top of the scheme will perpetually be at the top and the income gap in this county will grow exponentially. Not only that but a larger burden of the tax bill will be shouldered by the middle class.

Finally, I assure you you would do well to be my kid. Having a wealthy dad is awesome I tell you My kids will be well taken care of. When they are ready to go to college or buy their first car/home I will be there for them. I will prepare them to succeed in this world, I just won't hand them my estate upon my death. The estate is already earmarked for charity.

[FRPLG]

Originally Posted by saden1

OK, so what's the real difference between leaving your money to a total stranger vs leaving it for your children? Suppose I leave the money to someone that isn't my child? Should it be taxed? Should preferential tax treatment be given to your own kids?

I'm sorry but passing down wealth without taxing it is akin to a pyramid scheme. People at the top of the scheme will perpetually be at the top and the income gap in this county will grow exponentially. Not only that but a larger burden of the tax bill will be shouldered by the middle class.

Finally, I assure you you would do well to be my kid. Having a wealthy dad is awesome I tell you My kids will be well taken care of. When they are ready to go to college or buy their first car/home I will be there for them. I will prepare them to succeed in this world, I just won't hand them my estate upon my death. The estate is already earmarked for charity.

IT ALREADY IS TAXED. ANd I would say my personal opinion is that if you can't see the difference between leaving family money to your kids rather than a starnger then there is no way we will ever agree on this.

[saden1]

Originally Posted by FRPLG

IT ALREADY IS TAXED. ANd I would say my personal opinion is that if you can't see the difference between leaving family money to your kids rather than a starnger then there is no way we will ever agree on this.

We'll just have agree to disagree because the way I see it, the father has been tax and the kids receives a tax free pay check. Also, from the state's perspective I don't think there should be an ounce of a difference between giving your money to your kids or to strangers.

[Stacks42]

Originally Posted by saden1

OK, so what's the real difference between leaving your money to a total stranger vs leaving it for your children? Suppose I leave the money to someone that isn't my child? Should it be taxed? Should preferential tax treatment be given to your own kids?

I'm sorry but passing down wealth without taxing it is akin to a pyramid scheme. People at the top of the scheme will perpetually be at the top and the income gap in this county will grow exponentially. Not only that but a larger burden of the tax bill will be shouldered by the middle class.

Finally, I assure you you would do well to be my kid. Having a wealthy dad is awesome I tell you My kids will be well taken care of. When they are ready to go to college or buy their first car/home I will be there for them. I will prepare them to succeed in this world, I just won't hand them my estate upon my death. The estate is already earmarked for charity.

So you agree with the death tax and want to raise it? You say that you are going to buy your kids a car and pay for college. Well say you have that money set aside for them, and you die. That 100k for school you set aside will be reduced to 50k, that 25k you set aside for the jetta is now 12.5k. Where is the logic in that?

[saden1]

Originally Posted by Stacks42

So you agree with the death tax and want to raise it? You say that you are going to buy your kids a car and pay for college. Well say you have that money set aside for them, and you die. That 100k for school you set aside will be reduced to 50k, that 25k you set aside for the jetta is now 12.5k. Where is the logic in that?

You assume incorrectly. If I happen to die prematurely I have a financial plan that insures their basic needs are taken care of foremost.

[70Chip]

Originally Posted by saden1

My support for the "death tax" is based on a singular principle of fairness (not from your point of view I am sure). It's my belief that one shouldn't receiver tax free money even if it's coming from their parents. I see parents leaving money for their children as a form of payment and every time I get paid uncle sam takes his cut so why shouldn't he take a bite out of inheritance? Simply put I would like to see the money treated as if it were income and taxed progressively.

I suppose it should be noted that I have no intention of leaving my kids a windfall.

But the parents already paid taxes on the money once. And what about small businesses and family farms? Warren Buffet was before congress recently and he very selflessly offered his opinion that the death tax was important to insure that the rich paid their share. Then it was revealed that he has swooped in and bought up about thirty businesses that were distressed because of the burden placed on them by the death tax.

[Sheriff Gonna Getcha]

Originally Posted by 70Chip

But the parents already paid taxes on the money once. And what about small businesses and family farms? Warren Buffet was before congress recently and he very selflessly offered his opinion that the death tax was important to insure that the rich paid their share. Then it was revealed that he has swooped in and bought up about thirty businesses that were distressed because of the burden placed on them by the death tax.

How were the businesses distressed by the death tax?

[70Chip]

Originally Posted by Sheriff Gonna Getcha

How were the businesses distressed by the death tax?

The death tax is like 50% so if you inherit a business from your parents that is worth 3 million dollars, which could be a small appliance store for example, you may be hit with a ginormous tax bill. Now, obviously Buffet isn't buying small appliance retailers but you see the point.

Estate tax (United States - Wikipedia, the free encyclopedia)

Buffett thinks this is one tax that's a good idea

Grover G. Norquist on the Death tax and Warren Buffett on NRO Financial=

[Sheriff Gonna Getcha]

Originally Posted by 70Chip

The death tax is like 50% so if you inherit a business from your parents that is worth 3 million dollars, which could be a small appliance store for example, you may be hit with a ginormous tax bill. Now, obviously Buffet isn't buying small appliance retailers but you see the point.

Estate tax (United States - Wikipedia, the free encyclopedia)

Buffett thinks this is one tax that's a good idea

Grover G. Norquist on the Death tax and Warren Buffett on NRO Financial=

I have mixed feelings about the estate tax and this is going to sound cold, but those business owners should have better business sense. Death isn't exactly an unforeseeable event. Someone who owns a closely-held/family-owned business and who wants his or her family to continue the business should buy life insurance naming the successors and/or the business itself as beneficiaries. Life insurance isn't cheap, but it shouldn't force well-run businesses to go under.

[70Chip]

Originally Posted by Sheriff Gonna Getcha

I have mixed feelings about the estate tax and this is going to sound cold, but those business owners should have better business sense. Death isn't exactly an unforeseeable event. Someone who owns a closely-held/family-owned business and who wants his or her family to continue the business should buy life insurance naming the successors and/or the business itself as beneficiaries. Life insurance isn't cheap, but it shouldn't force well-run businesses to go under.

It's not about it being "cold". It's about sensible economics and being able to pass something on to your children. The people who should be paying this tax are people like Buffet and Gates and their ilk. I can see a logic in the idea that Gates should have to give back some of his billions. Especially since his products suck balls. But I digress. These people are the ones who can afford to set up avoidance mechanisms and never seem to pay taxes of any kind. Most government regulation misses its target. The really, really big companies can absorb all these rules and fees and retrofitting all their bathrooms for transgendered whatever. It's their up and coming potential competitors who get nailed. What it is is Liberal Fascism.

[firstdown]

Originally Posted by Sheriff Gonna Getcha

I have mixed feelings about the estate tax and this is going to sound cold, but those business owners should have better business sense. Death isn't exactly an unforeseeable event. Someone who owns a closely-held/family-owned business and who wants his or her family to continue the business should buy life insurance naming the successors and/or the business itself as beneficiaries. Life insurance isn't cheap, but it shouldn't force well-run businesses to go under.

Your right and when they realise that their is an issues and now are much older and now need a large life policy the premimums can be THOUSANDS PER MONTH and allot of times it is not affordable. You also think that its ok for the goverment to put such a burden on small family busnesses? Remember the tax is based on the value of the business and not the income that the family makes off the business. So if your a small business makeing X and you have a plant with 20 workers that the goverment says is worth 5,000,000 then thats what your taxed on even though you may only make $120,000 per year.

[Sheriff Gonna Getcha]

Originally Posted by firstdown

Your right and when they realise that their is an issues and now are much older and now need a large life policy the premimums can be THOUSANDS PER MONTH and allot of times it is not affordable. You also think that its ok for the goverment to put such a burden on small family busnesses? Remember the tax is based on the value of the business and not the income that the family makes off the business. So if your a small business makeing X and you have a plant with 20 workers that the goverment says is worth 5,000,000 then thats what your taxed on even though you may only make $120,000 per year.

If the business purchases life/key-man insurance on the CEO/President/Founder, it's deductible. A few thousand dollars a year is not going to tank a business worth millions. Also, the estate tax only affects individuals worth $2M (including his/her interest in any business he/she owns in part or whole). So, it's not as though the guy who runs the candy shop or down the street or his family is typically unaffected by the estate tax.

[saden1]

Originally Posted by Sheriff Gonna Getcha

I have mixed feelings about the estate tax and this is going to sound cold, but those business owners should have better business sense. Death isn't exactly an unforeseeable event. Someone who owns a closely-held/family-owned business and who wants his or her family to continue the business should buy life insurance naming the successors and/or the business itself as beneficiaries. Life insurance isn't cheap, but it shouldn't force well-run businesses to go under.

Couldn't agree more.