Current Events > Those of you here who are against the estate tax...........?

(+) Yeah! (+)

read this article on msn on how clooney gave 14mil., 1 mil each to 14 friends and iirc he paid hundreds of thousands of dollars in gift tax or something like that. I think if it's under 14k then you don't have to pay a gift tax. But i have heard people say this before, that if you give someone more than 14k then you have to pay taxes on it, so why shouldn't a transfer of billions of dollars be taxed?
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They probably disagree with that being taxed too.
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bump
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Because that money's already been taxed. My counter question to you is why does the government deserve somebody's money just because they died?
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r4X0r posted...

Because that money's already been taxed. My counter question to you is why does the government deserve somebody's money just because they died?

what do you think about the gift tax? where it's taxed if you gift somebody 14k or more? do you think that should be taxed? Like in george clooney's case
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He's actually paid no gift tax yet. The taxable gifts are applied to his estate, and anything over the exclusion will be taxed after he dies. Edit: forgot he went over the lifetime exclusion.
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EndOfDiscOne posted...

He's actually paid no gift tax yet. The taxable gifts are applied to his estate, and anything over the exclusion will be taxed after he dies.

are you talking about the george clooney story?
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A_Good_Boy posted...

They probably disagree with that being taxed too.

Yes. Gift taxes are also bullshit.

r4X0r posted...

Because that money's already been taxed.

What are your thoughts on sales tax?
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Antifar posted...

r4X0r posted...

Because that money's already been taxed.

What are your thoughts on sales tax?

yeah good point dude
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Antifar posted...

r4X0r posted...

Because that money's already been taxed.

What are your thoughts on sales tax?

Sales tax is ridiculous. I drive my vehicle powered by gasoline I paid tax on, on roads I paid tax for, to a business that pays property tax to be there, and our transaction is... again taxed? I make money, pay tax on it, buy something from you, pay tax on it, then you have to pay tax on that income. Absurdity. Five states don't have sales tax. We have to pay tax to make money, pay tax to use money, and then that money is again taxed as income.
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r4X0r posted...

Antifar posted...

r4X0r posted...

Because that money's already been taxed.

What are your thoughts on sales tax?

Sales tax is ridiculous. I drive my vehicle powered by gasoline I paid tax on, on roads I paid tax for, to a business that pays property tax to be there, and our transaction is... again taxed? I make money, pay tax on it, buy something from you, pay tax on it, then you have to pay tax on that income. Absurdity. Five states don't have sales tax. We have to pay tax to make money, pay tax to use money, and the person who gets that money has to pay tax on it.

i thought every state had sales tax. are they in the deep south?
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Smallville posted...

i thought every state had sales tax. are they in the deep south?

Oregon is not in the deep south.

yeah no shit sherlock, i said i didn't know which ones they were
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Are you talking about the estate tax or the inheritance tax? They are two completely different things.

And yes the yearly max for gifts is 14k.

Also the federal inheritance tax doesnt kick in unless the whole shebang (inheritance and estate) is greater than 5.4 million so pretty much 95% of Americans it doesnt even apply to.
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And there is a few ways to legally get around death taxes.
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The double tax argument isn't strong to me. The person that died isn't being taxed on the money twice. The person the money is going to is getting taxed. They are getting income, so they get taxed.

The gift tax I actually don't agree with.
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josifrees posted...

Also the federal inheritance tax doesnt kick in unless the whole shebang (inheritance and estate) is greater than 5.4 million so pretty much 95% of Americans it doesnt even apply to.

That threshold gets doubled in the new tax bill, lol
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and it will apply to even less americans since with trump's new tax proposal it will be raised to 11 mil per person and around 20 mil per couple iirc, which obv. won't benefit trump personally, any
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emblem boy posted...

The double tax argument isn't strong to me. The person that died isn't being taxed on the money twice. The person the money is going to is getting taxed. They are getting income, so they get taxed.

The gift tax I actually don't agree with.

What's the difference between grandpa giving little Billy a million dollars, or grandpa dropping dead and Billy getting a million dollars in the will?

Smallville posted...

and it will apply to even less americans since with trump's new tax proposal it will be raised to 11 mil per person and around 20 mil per couple iirc, which obv. won't benefit trump personally, any

Wrong; raising the threshold helps Trump because it means an extra $5 million that goes untaxed.
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josifrees posted...

Also the federal inheritance tax doesnt kick in unless the whole shebang (inheritance and estate) is greater than 5.4 million so pretty much 95% of Americans it doesnt even apply to.

You mean the federal estate tax. There is no federal inheritance tax.
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Questionmarktarius posted...

emblem boy posted...

The double tax argument isn't strong to me. The person that died isn't being taxed on the money twice. The person the money is going to is getting taxed. They are getting income, so they get taxed.

The gift tax I actually don't agree with.

What's the difference between grandpa giving little Billy a million dollars, or grandpa dropping dead and Billy getting a million dollars in the will?

Whether or not Billy or grampa pay taxes on that money
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josifrees posted...

And there is a few ways to legally get around death taxes.

yeah but the govt's lawyers are also very aware of those loopholes and they're probably on the look out for them also in cases where the estate tax applies, heck bill davidson's widow the former owner of the pistons was forced to sell the team because of estate taxes
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Smallville posted...

josifrees posted...

And there is a few ways to legally get around death taxes.

yeah but the govt's lawyers are also very aware of those loopholes and they're probably on the look out for them also in cases where the estate tax applies, heck bill davidson's widow the former owner of the pistons was forced to sell the team because of estate taxes

If you set up a corporation and keep your wealth in that, when you pass there is no taxes and there so loophole unless the IRS intends to start to tax corporate management changes.
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Questionmarktarius posted...

emblem boy posted...

The double tax argument isn't strong to me. The person that died isn't being taxed on the money twice. The person the money is going to is getting taxed. They are getting income, so they get taxed.

The gift tax I actually don't agree with.

What's the difference between grandpa giving little Billy a million dollars, or grandpa dropping dead and Billy getting a million dollars in the will?

The difference is grandpa died
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josifrees posted...

Questionmarktarius posted...

emblem boy posted...

The double tax argument isn't strong to me. The person that died isn't being taxed on the money twice. The person the money is going to is getting taxed. They are getting income, so they get taxed.

The gift tax I actually don't agree with.

What's the difference between grandpa giving little Billy a million dollars, or grandpa dropping dead and Billy getting a million dollars in the will?

The difference is grandpa died

Okay. Why should dead grampa be taxed differently from live grampa?

josifrees posted...

Smallville posted...

josifrees posted...

And there is a few ways to legally get around death taxes.

yeah but the govt's lawyers are also very aware of those loopholes and they're probably on the look out for them also in cases where the estate tax applies, heck bill davidson's widow the former owner of the pistons was forced to sell the team because of estate taxes

If you set up a corporation and keep your wealth in that, when you pass there is no taxes and there so loophole unless the IRS intends to start to tax corporate management changes.

what? never heard of this. Could this be what gates and zuckerburg etc. are thinking when they say they will give 99 perc. of their fortunes to charity? Not really sure
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emblem boy posted...

The double tax argument isn't strong to me. The person that died isn't being taxed on the money twice. The person the money is going to is getting taxed. They are getting income, so they get taxed.

The gift tax I actually don't agree with.

If one person gives another person money that they already paid tax on, what's the justification for the government getting a cut? What did the government do there to earn it? When I go to work I'm using publicly funded infrastructure to get there and do my job. My income tax is compensating the government for that. An inheritance or a gift... not so much.
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Questionmarktarius posted...

josifrees posted...

Questionmarktarius posted...

emblem boy posted...

The double tax argument isn't strong to me. The person that died isn't being taxed on the money twice. The person the money is going to is getting taxed. They are getting income, so they get taxed.

The gift tax I actually don't agree with.

What's the difference between grandpa giving little Billy a million dollars, or grandpa dropping dead and Billy getting a million dollars in the will?

The difference is grandpa died

Okay. Why should dead grampa be taxed differently from live grampa?

Billy should be taxed on both situations.
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Smallville posted...

josifrees posted...

Smallville posted...

josifrees posted...

And there is a few ways to legally get around death taxes.

yeah but the govt's lawyers are also very aware of those loopholes and they're probably on the look out for them also in cases where the estate tax applies, heck bill davidson's widow the former owner of the pistons was forced to sell the team because of estate taxes

If you set up a corporation and keep your wealth in that, when you pass there is no taxes and there so loophole unless the IRS intends to start to tax corporate management changes.

what? never heard of this. Could this be what gates and zuckerburg etc. are thinking when they say they will give 99 perc. of their fortunes to charity? Not really sure

I don't think this usually works because the ownership interest in the corporation is taxed in the estate. I think there are exceptions like with closely held family businesses. This isn't my area of expertise.
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I disagree with the estate tax as it is double income taxation. Like you paid income tax on it and then you pay income tax on again just for dying.

It isn't like transferring money is generating any real production of goods and services.
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DragonGirlYuki posted...

I disagree with the estate tax as it is double income taxation. Like you paid income tax on it and then you pay income tax on again just for dying.

It isn't like transferring money is generating any real production of goods and services.

are you also against a lot of other taxes? the gift tax for example?
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Of course. Who wants to pay tax.
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well the govt needs money somewhere and somehow, they get a lot from the estate tax but of course it's a relatively small percentage of the total
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Gift tax is also ridiculous
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