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Honored Advisor

Re: Estate Taxes..Uff Da

This is just it Don, estate tax is a Joe 6 pack issue, farmers are Joe 6 packs.  Just look at a inflation calculator http://www.usinflationcalculator.com/   .  You know not all Joe 6 packs work just a 38 hr week and spend the rest of their lives at a bar playing pull tabs.  Some are moonlighting as farmers or other business to leave their family a legacy.  Why as a nation would we want to punish entrepreneurism?  There are alot of unintended consequences  of confiscatory death taxes, for example why wouldn`t Joe just work his 38 hrs and sit in the bar if there`s no incentive to do otherwise?  This isn`t capital gains that is exempted it is "inflation exempted" and to illustrate that if you had a house that appreciated in value to say $1 million if you sell it true you`d have $1 million, but to buy another comparable house you`d spend that entire $1 million maybe more.  According to Neil Harl-if nothing is done estate taxes will go to the 55% above $1 million, in this class envy environment it is a concern.  

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Veteran Advisor

Re: Estate Taxes..Uff Da

I like that idea, but I also like the idea to be able to spread the 'income' from a large capital sale over perhaps 5 years or so, much the same way you can depreciate out a combine over 5 years, on the expense side.

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Highlighted
Senior Advisor

Re: Estate Taxes..Uff Da

Also one can use the   "gifting "" as an option to reduce an estate or buy  life insurance to cover the expense ---

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Honored Advisor

Re: Estate Taxes..Uff Da

Here is the real bullcrap.  We work our tails off for a lifetime, pay our bills, educate our kids at our expense, make our payments on time for decades, and pay taxes to everyone, every time we open our eyes. 

 

This so other families can send their children to public child care at the age of six WEEKS, since they are such unfit parents, ship them to the public school system for special ed at age two, feed them two meals a day away from home, food stamps for meals at home, WIC and Medicaid...none of which I begrudge the children.   I just despise that a trifling set of adults get to take a free ride, with their bellies full, the lights on, the heat paid for out of a fund my electric company builds by tapping my bills for extra dollars every month, and no one is even grateful for what workgin people do...we are suckers in their way of referring to us. 

 

It did, I  will be honest, bug me to sit with my daughter in her OB's office last month, and hear one woman griping about her $3 Medicaid co-pay...but, at least she was getting prenatal care.  Paying a total of maybe $30 for a $25,000 delivery is not a bad deal, I guess.  If we accept that government is supposed to pay for the progress of people who won't wet and oar to row their own boat, then I guess your assessment makes sense. 

 

"Someone" who pays taxes foots the bill for all of those who don't.  Then, when that someone dies, the property they struggled to pay for gets taxed so hard, their heirs have to sell it off to pay for even MORE re-distribution of wealth?  That is the real bullcrap. 

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Senior Advisor

Re: Estate Taxes..Uff Da

 Seems like some entities want to always wrangle out special exemptions on all fronts---no regs except for everyone else---example ""DOT"" ---why should someone who maneuvers  80,000 rig down the road with  2-3  decades experience be held to more regs. than some one moving the same # down the road with 2 weeks of tenure ---come on where is the common sense and the same might apply here---  

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Highlighted
Honored Advisor

Re: Estate Taxes..Uff Da

Insurance companies just love this talk about estate taxes, it`s a real selling point.  The thing with gifting, there`s a $10,000 limit per yr and there`s ways around it, in both a husband and wife separately giving each kid and their spouse and each grandkid, but that can be a bolixed up mess, a lawyer`s paradise. Another thing about gifting is we don`t know when we pass away, will it be at 47 or 97?  And perhaps a kid isn`t mature enough at that stage in their life to handle a outright gift.  I just think that a common sense approach of all the federal and state inheritance tax should NOT exceed over 50% period! regardless of the estate`s size. Also adjust values to inflation, because a 80 acre farm is a 80 acre farm is a 80 acre farm whether it`s 1912 or 2012.

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Honored Advisor

Re: Estate Taxes..Uff Da

The value of any real asset is subject to fluctuations in market prices for land, homes, etc. 

 

Homeowners had an exemption on gains for sale of the prinmary residence, and many played that one out and reaped great income, without any taxation of it at all.  That the last flip failed ought not to be taken as a big social problem. 

 

As for people who are upside-down in a mortgage, they bought a marketable commodity that had experienced an unprecedented rise in value, and then that market corrected to a more normal valuation, fistorically speaking.  Homes were never supposed to be investments, they were supposed to be SHELTER. 

 

If you regard your house in that light, then it really doesn't matter what you pay or paid for it, as long as you can foot the bill.  If you considered a house your biggest investment, to be unloaded at some future point in time, you are screwed...unless, of course, you can afford to stay put, or wait out the present slump. 

 

People buy homes for all sorts of wrong reasons...typically, in areas like Raleigh, they are sold on the basis of school district, and then there is an uproar when redistricting for school enrollments occurs. 

 

I would rather live in a less-spectacular home, as we do, and pay tuition for private school, if necessary, as it is here. 

 

When you realize how many tax breaks people get for no good reason...an RV qualifies as a "second home, " for tax purposes, for example...you have to follow the money, and see who bought whom in DC. 

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Highlighted
Friend

Re: Estate Taxes..Uff Da

Be sure to vote republican to do away with the estate tax

 

Romney states he will get rid of the tax so vote romney

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Highlighted
Honored Advisor

Re: Estate Taxes..Uff Da

You have that right Sidney!  There is nothing at all fair about estate taxes regardless of the size of the estate.   As a matter of fact I believe that estate tax is in the plank of the communist manifisto.  If you take away the people`s incentive to plan for the future and work so their Children have a better life than you..you will end up with a nation of lumps sitting on a bar stool playing pull tabs.  Mitt Romney is a Good Man, he`s got my vote! 

Highlighted
Veteran Advisor

Re: Estate Taxes..Uff Da

Kay, you really have to quit being so shy, and let us know what you think LOL.

 

My SIL is an ER nurse, and the stories about the people with new viechles on Medicaid astound me.  She finally had one admit to her, that the reason they have a new viechle, when their old one was perfectly fine (this was a 'regular' who brings her kids in from time to time) was this:  Medicaid will pay all your medical bills, as long as your net worth is under a certain level.  As long as they are making car payments, and the bank has the title, they can claim that the car isn't 'theirs'.  Once paid for, if it is worth too much, they lose medicaid, so they trade it off, rather than build up net worth. 
And yes, she thinks someone like me is a sucker, living 'poor' so that I can build up equity, to eventually pay off my little acerage.

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