Estate tax question: Why do Republicans want this eliminated?

Question

I've heard the arguement that if the rich are allowed to keep more money by being taxed less, that they will have more to spend towards jobs and growth.
If the 'death' tax was lifted, wouldn't the rich be less apt to reinvest in society and simply keep passing the money on to their own generations? How does that help the middle class other than to increase THEIR tax burdon?

Okay, really..be honest. Who does it effect? If you die with $1M in your bank account, I'm supposed to feel sorry for you because you're children will be taxed?

Farmers??? LMAO! There are few farmers in the US anymore...they've either sold their farms to agribusiness like Conagra or sold it to developers to put up cookie-cutter suburbs on. 90% of this country's farming is done by big business and THEY ARE GETTING A TAX BREAK!

Number of farms affected by estate tax: 300

http://www.nytimes.com/2005/07/10/politics/10tax.html?ei=5090&en=22a8028346e584e4&ex=1278648000&adxnnl=1&partner=rssuserland&emc=rss&adxnnlx=1197666638-b7dj0NR/iSLl6YDfo9qcpw

Yeah..why tax the dead? We should keep the tax burdon squarely on us lowly middle class workers who keep rowing the slave ships 60 hours a week...maybe the rich will throw us some crumbs and call it "trickle down" economics.

Answer 1

The money's already been taxed. What's fair about double taxation.

Answer 2

So people can keep the family farm, business or house.

Estate tax isn't on income, it's on value. The value of property is the reward for having put the money to work in the economy and providing a good or service that people want.

Look at it this way. If I have a family farm worth $10 million in land and livestock, it is still a very small family farm. It might only make $500,000 in revenue and $200,000 in profit in a year, and it might take 10 people to work it, so each worker makes about $20,000 on average. 5 of those people may be family, 5 of them may be hired hands. The farmer is providing a product to his customers, a job to his family and employees and taxes to the local government. But when he dies, the family has to split up the property to sell half of it to pay the government taxes. So he has to fire half the workers and ends up paying 1/2 the taxes. Death taxes make a quick buck at the expense of the goose that lays the golden eggs.

And even if the family is Bill Gates, who doesn't grow anything but money, that money is in stocks that are "working" to provide money that grows and runs businesses that hire people and pay regular taxes. It isn't in some big pile in a bank or stuffed in a mattress. It is out working in the economy and forcing it to be sold may seriously affect it's overall value. Imagine if you held a lot of real estate and died now. Your family would probably sell for a loss to pay the tax man when two years from now the value may return.

And in all situations, every dollar that went into a persons net worth has already been taxed along the way. Uncle Sam has taken his 30% of every dollar made, and now he wants half of what he didn't get the first time.

Really, it all boils down to two things: The long vs the short view and if you think that double taxation is honorable.

And don't think that $2 million is really "rich". It might be in the midwest, but in any big city it is a 3 bedroom house, two cars and a small retirement nest egg.

Answer 3

I think since it's their money and they have already paid taxes on it they should be able to do what they want with it. I just don' like the line of BS they feed to everybody that putting more money into the hands of the wealthy will benefit the economy. Bush gave the wealthiest a big tax break and look how well that helped. I say tax the wealthy at a higher percentage rather than making the hard working middle class foot the bill for everything.

Answer 4

The tax does a little bit to prevent an entrenched aristocracy in the US. Most really rich people use various trusts and gifting schemes to reduce the amount. Also, most of the people complaining about double taxation and why can't I give my kids the money I earned seem to be ignorant of the fact that only an extremely small percentage of people have enough money to be subject to the estate tax. The republicans like to talk about it because they get votes from the ignoramuses who think the tax applies to them, ands also because they want really rich people to keep more of their money.

The first million dollars or so is exempt for the tax, I could see raising that to 5 million or so, as a million dollars really isn't that big of an estate these days.

Answer 5

First of all, the estate tax was suppose to be temporary to raise money to fight WWI.
Secondly, when it was first enacted almost 100 years ago, it only effected the very wealthy. Inflation and bracket creep has brought this tax to the middle class. It was never intended to tax the middle class.
As someone else pointed out, it doesn't just involve cash. Assets of a family business are also included. 100 years ago not very many people had assets in excess of $1.5 million. Today, it's pretty common.

Answer 6

I've been paying my taxes since say 1957 straight..I AM FIRST class Middle class... I gotten my refund every year..
I am very satisfied that MY share has been FAIR
as for the amount I pay less that 2000.
as far as I have heard the "rich" pay ten times that
and America continues to grow
once you make over 100 000 taxes are a "petty" pain..
Anything you seem to look for,, is Communism or dictatorship
vote the muiti millionaire into political office that thinks your right..
But in the end they will adopt pay as you go..
and give themselves a raise to boot

Answer 7

The "haves and have mores" (Repukes for the most part) want the middle class and below to have their tax burden, (the other alternative is that the debt grows), and the estate tax is how the h&hm's usually pay their fair share, if then, because in life the income tax is written BY them with loopholes galore. The notable supporters of the estate tax are Gates and Buffet. And what you cite is "trickle down" economics which has NEVER worked. Down with Dictator Dumbya!!!

Answer 8

its not just money in the bank its assets. larger small business owners have to close shop or sell off to larger companies to afford the tax in a lot of cases. this is one reason the ultra rich (IE Buffett) like the tax, its no big deal for someone of his wealth to drop a couple mil but they can come in and buy up smaller business when the owner dies. Just like has happened in the farm market. I suggest you go back and look how many farms were effected under clinton when the estate tax was at 1.25 mil

Answer 9

Because you are only lazy and worthless, if your parents aren't rich.
If your parents are rich and pass it onto you, then its ok to snort cocain, and shoot heroin, and share some meth with some friends, because you are rich. In a Republican's world, if you are rich you are a good person, doesn't take much else.
They also believe you should only have to work harder and better your life, if your parents aren't going to leave you a hefty sum of cash.

Personally, I feel, if you are too stupid that you can't figure out how to avoid a huge amount of estate tax, than the old saying applies: "a fool and his money are soon parted."

Answer 10

I have seen growing up on a farm, farmer afraid of this tax since the machinery and land was expensive.
Why not adjust the income tax to make up for Estate Tax?
Why people not like the Estate tax?
Because it is morbid. You are taxing the wealth of a person who has been taxed all their lives because they died.
Are you punishing someone for being rich and being dead? It sounds like you want to punish them.
There a lots of ways to tax without having to tax dead people.

Answer 11

I do think of the wealthy ought to pay extra in taxes , I worked interior the coal mines and that i payed between Fed and state 35% of my earnings. now I purely desire something truthful , it no longer truthful, that a billionaire pays 17% is it. in case you win the lottery , they take 0.5. we want a tax overhaul , with your make extra, you pay extra, yet no person ought to haft to pay over 40% in spite of everything. additionally executive have been given to regulate what they have been given extra helpful. i assumed estates tax have been payed to the state. no person ought to get a tax decrease, till we pay China off. that would desire to B the 1st rule of executive.