Puttng the old pocket calculator...

[bruce MN]

.....to the tax rate discussion.

Incoming....Lead balloon.:

http://www.nakedcapitalism.com/2011/12/piketty-saez-and-stantcheva-taxing-the-1-%e2%80%93-why-the-to...

[BA Deere]

Bruce, correlation does not imply causation when making cross-country tax rate comparisons.  Did you read the comments in your story`s link? They are dyed in the wool socialists "90% above $1million income" and such.  Their opinions of inheritance tax was even more scary, effectively making sure everyone dies broke.  Speaking of inheritance tax, Neil Harl was on the radio yesterday saying that the current $5 million exemption will run out at the end of next year and it has very little political interest in making the $5 mill permanent.  It will revert back to Obama`s "55% tax above $1million".  Harl said, foolishly going back to that rate would generate about $35 Billion in extra revenue. With $20,000/acre land being sold right and left   Heirs selling a 80 acre farm would get killed in death taxes.

[bruce MN]

No kidding.

They'd only have only a million or so left over. For a farm that the Grant or Hayes adminsitration gave to gr. gr. gr Grandpa for nothing or that Daddy bought in1958 for $16,000. And that probably contributed to the rearing, employment and educating of a few dozen or so of their ancestors and relatives along the way.

Probably wind up in the poorhouse.

[Samnospam]

Makes sure you use the fed create inflation in your calculation.

[r3020]

---

@bruce MN wrote:

No kidding.

They'd only have only a million or so left over. For a farm that the Grant or Hayes adminsitration gave to gr. gr. gr Grandpa for nothing or that Daddy bought in1958 for $16,000. And that probably contributed to the rearing, employment and educating of a few dozen or so of their ancestors and relatives along the way.

Probably wind up in the poorhouse.

---

From each according to his ability, to each according to his need. The progressive manifesto.

[kraft-t]

Don't forget the inheritance tax exemption. At $20K per acre you could pass 250 acres without a dime of inheritance tax. 500 acres by and man and his spouse..

DEmocrats favor a inheritance tax exemption but hardly as generous as the republicans. That guy with $20K land may hav bought it for$3k or less gets a favorable capital gains rate of 15%. $17k gain a 15% is a lousy $2550 per acre times 80 acres or $204 K in capital gains taxes for a sale of $1.6 million

Inheritance tax would be zero at current rates A $204K gift to the land owner compared to a working stiff earning $1.3 million profit.

Perhaps you can see some unfairness in estate taxes but i can't. Capital gains income is no more precious or more deserved than ordinary income and should bear the same tax rates.

BTW I don't beleive OBama ever said he preferred the old inheritance tax rates. It will revert to that if the Bush tax cuts expire but I think most democrats woiuld favor a 2..5 M exemption or a $5M exemption per couple.

[kraft-t]

Yeah like inflation doesn't count for a working stiff who's paycheck has been flat for 2 decades and the tax man still takes  a bite.

[cowfarmer]

I would compromise with the dems, I say lets get rid of direct payments becase wealthy farmers generally get more. Lets get rid of the taxloopholes for equipment, and keep the death rate where it is. I am firmy for a national sales tax, if you want that fancy tractor or pickup pay extra tax. If we had national sales tax our income tax would be lower. If I CHOOSE to live within my means and have a little extra cash why should I be punished. This tax code is running small farms out of business, I would also control cash rent bids by not giving huge subsidies for insurance policies. I'm a complete lib on this whole corporate farm thing, lose more small farms and lose the country. I also wouldn't subsidies abortions this is a random rant but on a fishing trip I met a obgyn he told me about what happens in late term abortions and it completely changed my mind on abortion. Barbaric isn't the word, if you don't believe me look it up.

[Samnospam]

I think we've come up with a great idea Don. Allow an inflation adjustment to taxation, the government is stealing our money through inflation it should compensate us. Doesn't it feel good don to work together to solve problems.

[BA Deere]

No Don, what you`re describing is the $5 million exemption that it is now after the Republicans comprised and fought for that.  If the Republicans lost in the 2010 election, the inheritance tax would be 55% above $1 million AND according to Neil Harl it WILL go back to 55% over $1 million  at the end of 2012, if nothing is done ie, the republicans lose in the 2012 election.  Land or any asset that required payments were done with AFTER TAX DOLLARS.  So to address your claim about "working stiffs not getting a bump with inflation" well farmers ARE working stiffs.  I know the past 4 years have been flush, but look at all the crappy years we had before `07.  In the early 2000`s I sold cash corn for $1.40 ...alot under $2, at those prices you are doing damned good just to keep the wolf away from the door. Alot of us were working off the farm as literal "working stiffs" to put food on the table in those years. In the early 2000`s land was sub $2000 and today it`s $10,000 a "quarter" is a "quarter" is 160 acres and if in the year 2002, 500/acres could be passed to the younger generation free of a death tax, that same 500a should pass untaxed in the year 2032 and the year 2232 untaxed.  Because as volatile as land price is (1980-$3,000 and in 1985-$1,000)  and 2000-$1,800 and in 2011-$10,000)  now wouldn`t it be a kick in the balls if the Dems got their way and a young heir went in debt paying taxes on $10,000 land the price dropped to $2,000 and the poor basterd owed more than what the farm was worth just because of death tax???  I doubt you give a sh!t but I told you anyway