Why do liberals fail to acknowledge that an Estate Tax is redistribution of wealth?

Question

Everytime I hear a liberal whine about all of the government programs that are affected by the reduction of the estate tax it just proves my contention that nothing short of communism will make these people happy. An estate tax penalizes people who die rich, and is just a way for the government to legally steal a family's money.

Why should hard earned money be taken from someone's estate? Why wait until they are dead? Just set a limit and once you earn more than that the government gets it. Its the same thing, taking money for the "good of the people" doesn't become any less onerous just because the person who owns it dies.

The money is taxed as earning already, and then annually on interest. Liberals are using the tax code to play Robin Hood.

Thank you masterjack, Max Sterling, Nora and Thomas S. By either ignoring the question and trying to insult me or by totally engaging in lies or changing the subject instead of dealing with the question asked you again prove my point that liberals, and by association, the Democrats, cannot legitimately argue a point, especially when they know they are wrong.

Nora, everything you said is wrong. From your personal attack on me (I'm quite well informed), to liberals founding this country (they were against excess taxation, remember, they were also landowners and businessmen, not exactly your typical liberals.) And I find it odd that you would associate retaining your family's possessions with winning the lottery.

Cool Guy: For someone who admonishes me to learn about economics let me fill you in on a little something. People with large estates generally invest that money, either in the markets or T-bills; this is a direct investment in our economy. How does a country benefit by taking half of a family's wealth (that was invested in the country's economy) and transferring it to the general treasury where it get pumped down the usual political rat holes?

If the money passes on to the family members it stays invested, and continues to generate taxable interest income. The way the Estate Tax is designed the treasury gets a short term windfall but loses a long term revenue source.

Answer 1

Actually, it's just Democrats "...using the tax code to play Robin Hood." Not all liberals.

But otherwise, you've got it correct. And they do realize it. They just think that's ok.

It's the old analogy. Democrats want to take your money and leave you free and poor. Republicans want to take your money and leave you rich and conforming. It's hyperbole, but makes the point.

Answer 2

Nora- You are on crack. Liberals did not found this country. That is so historically ludicrous it totally discredits everything you could ever say with a tone of idiocy. I am not even going to totally lambaste you with the historical facts but the Pilgrims, who were the first ones here in case you were unaware, were some of the most ultra conservative people around.

As for the question... Liberals are all for equality. They are so in favor of treating people equally that they will take away the rights of some to make others more equal. This is just another example. I will never understand how it is more fair to take something away from someone to give it to someone else than to leave it with the person who earned it.

Answer 3

Wow!...

After reading through some of these answers I'm not sure I could add anything to further illuminate the naiveté of the left, beyond what they themselves have said. They speak openly and unashamedly in defense of their feelings of victimization.

Bulletin #1 to the Left: People are not poor BECAUSE other people are wealthy.

Bulletin #2 to the Left: Wealthy people are not evil people who need to be punished or made to pay for their "luck".

Charles D's answer contains the following statement that captures the gut-feeling of most of these victims: “The idea is that the money is taken not for the good of the people but as payment for the privileges the wealthy enjoy.”

The wealthy do in fact enjoy privileges...as do you. They are the privileges of OPPORTUNITY we all share.

I've done well in my life (not super-wealthy but OK). I also started my own business from scratch at age 23, sold it, and then worked 12 - 14 hours per day, 6 days per week for 30 more years (no exaggeration...just ask my wife).

I was "lucky"?

I will leave some of my hard-earned money (NET of taxes already paid) to my children. Why?...because I worked hard to be able to provide for my family and that's what I want to do with my money.

By the way...both of my children are also working hard now. It's not some random genetic trait. Neither is the ability to work hard some unearned gift: "Wow!...I get to know how to work hard. Aren't I the lucky one!!!?”

But it may be the result of having good role models. Think about it. What lessons are being taught by the role models on the left?

Answer 4

The issue is that money was earned and taxed while the deceased was still alive. When it is inherited, it is again taxed as new earnings to the inheritors. If we didn't have an estate tax, then there could be a rich person who pays taxes, who dies, and whose children never again pay taxes, merely live off the inherited untaxed earnings. Combine that with the repeal of the capital gains tax on dividends, and we could end up with an oligarchy that never again pays taxes. They'd just invest one wealthy taxpaying generation's money, and live off the dividends for generations thereafter. Never paying a cent in taxes despite enjoying all the benefits.

The issue isn't playing Robin Hood, communism, or taking all of someone's money above a certain level. The idea is that the money is taken not for the good of the people but as payment for the privleges the wealthy enjoy. The United States does alot more for the wealthy than for the poor. The Interstate System, clean judges, courts, patents, laws, etc. all allow the wealthy to do so in a relatively safe and predictable environment. They should pay for it, and a certain percentage given over for that is not onerous, it is patriotic.

Answer 5

Wow, can you believe some of these answers? Yes, there are some rich people that are corrupt, but there are just as many (if not more!!) poor people that are just as corrupt! Most rich people have worked very very very hard for their money, and if it wasn't them, then it was their parents who worked hard. Money in this country doesn't just come from thin air - someone had to work for it. And for the government to write a tax code where your DEATH is taxable, or an inheritance is TAXABLE, then we really need to think about another tea party, and possibly: a revolution.

Answer 6

The "estate tax" does nothing for most people. The average person was exempt for the first few million . The estate tax hurt people like the Timken family which because of the new law will owe several billion less in taxes. I personally don't feel sorry for people with tax problems that have billions while we have working families struggling to survive. Besides "redistribution of wealth" is a Biblical idea. They Old Testament demanded redistribution at 50 year intervals. Funny how people support the Bible until it means money out of their pocket. Too funny!

Answer 7

You make some amazing statements and take mighty leaps of faith. Let me preface my statements by assuring you that our government lately has shown no evidence of fiscal responsibility so I don't suggest they be empowered to tax and spend more than they do. But, let's move on to inheritance taxes.

An estate tax does not penalize those who die rich -- those who so died are, well ... DEAD.
Their estates are taxed and only large estates since now $2 million is exempt.
Wealth is not "hard earned money." Wages are "earned money'" and the more lowly paid, the harder the earning seems to be.
Wages are taxed as income and wealth at a more favorable capitol gains rate.
Those with wealth have the option of establishing trusts, off-shore accounts, and hiring the most gifted tax attorneys to aid in tax avoidance and tax deference in ways wager earners never dreamed of simply by understanding tax codes understood by few. Wage earners do not have such options.

The country has evolved but the framers of the Constitution were wise, and hoped to protect us from the errors of the old world. They were in earnest striving to build a land of the free and the home of the brave -- guarding against aristocracy and striving for meritocracy.

Considering inflation and the number of primary residences worth over $2 million dollars, it would be sensible to consider raising the exemption from $2 M to possibly $5 but the problem with this congress is that issues are seldom brought to people for public debate. Instead we have arm twisting, secret midnight conference committees, and earmarks written in invisible ink.

For any more taxes collected, we are in desperate need of a lock box.

Answer 8

Liberals are using the tax code to play Robin Hood.

That would be true if the libs got the $$$$ But as it stands the World bank is collecting on debt.

You must be one of the 715 people with over 500 million dollar estates that would be effected by the tax. So I got this business going in LA and if I had some backers I could expand my contract. Are you interested>

Go big Red Go

Answer 9

In case you forgot, Liberals were the Founders of this country, and have run it ever since. This is why the USA is a successful nation, with people accumulating wealth to leave behind.

Everyone pays tax in this country on money they receive. If you win the lottery, you will pay tax on every dime (even thoughin your not-too-informed-opinion that money has already been taxed).

Same applies to inheritances. If you inherit funds, they get taxed. If a non-taxable charity or church inherits those same funds they don't get taxed.

So inheritance tax is levied on the person who did nothing to earn the money or other asset and is receiving it as a windfall, just asif he or she won the lottery.

What about this is so difficult to understand?

Answer 10

If I just sat and listened to you talk for an hour or so, I would learn alot. I have no answer but I enjoyed reading your question and comments.