Thursday, June 24, 2021
A closer look at Biden's death tax
Democrats in Congress have made no secret of their desire to slip all sorts of tax hikes into the various massive legislative packages that have thus far (thankfully) remained bogged down in the Senate. They would like to see a significant increase in the gas tax to pay for the liberal wish list known as “infrastructure.” There’s also a continued push for a so-called “wealth tax” on people who are considered by the Dems’ socialist wing to have “too much money.” But one of the most controversial of these plans is the call to greatly expand the inheritance tax, more correctly known as the death tax. However, describing it as either an expansion or an increase isn’t accurate. The New York Post took a look at the plan this week and revealed that what they really want to do is create an entirely new category of taxation for the estates of the deceased, treating the transfer of assets to survivors as a capital gains event. And in the background, the existing estate taxes would remain in place. This will hit families in blue states like New York and California that are already heavily taxed with the prospect of some tax totals that are simply jaw-dropping.
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So, this becomes a legal benefit to life insurance salesmen. Life insurance is not subject to estate tax and generates no capital gain, so by paying the an insurance salesman a commission, the proceeds are not taxable. Lawyers will inevitably have a new way to put a hand in your wallet, too.
ReplyDeleteThe writer uses estate tax and inheritance tax interchangeably. Estate tax is calculated on the estate of the person who died. Inheritance tax is paid by the people who get the money. Most states enacted an estate tax. A few states have inheritance tax. You should know your situation, and your parent's, too.
One more problem with the article: Capital gains should only be charged on the assets that have capital gains, such as stocks. The part not subject to capital gains tax would be subject to estate tax. It should be one or the other, but not both. But then, the law isn't written yet, so who knows what will be enacted.
Geek
They are only doing this because they haven't figured out how to tax the air we breathe, yet.
ReplyDeleteHere's comes the Taxman!
ReplyDeleteI wonder if the family farm will survive this time, after all those damn farmer are sitting on top of hundreds to thousands of acres of valuable land. They all vote Republican and they own guns.
Biden's life is taxing us enough.
ReplyDeleteTo all the little pukes living off mummy and daddy and waiting for them to check out so they could collect. You voted for this shit.
ReplyDeletePoor people buy food. Middle income buy things. Rich buy companies.
ReplyDeleteIf these taxes existed in the 90s when Musk was working with PayPal then neither Tesla nor Space-X would exist.
Bezos and all are wealthy by having stock in the company they founded. That stock represents control of the company. Taking that wealth means some idiot bureaucrat controls the company. Warren isn't capable of running a successful company like Amazon.