Drudge Retort: The Other Side of the News
Wednesday, February 13, 2019

Matt O'Brien: Let's repeat that for emphasis: If it weren't for the estate tax, the majority of the super-rich's money would never be taxed at all. How is this possible? The answer has to do with how we do -- and don't -- tax capital gains. Now, the first thing to understand is that any increase in the value of your stocks, bonds or real estate is only taxed when you sell them. But what if you don't? What if you just hold on to them, and eventually pass them on to your kids instead? Well, in that case, you -- or, more accurately, they -- stand to benefit from one of the biggest loopholes in the entire tax code.

More

Comments

Admin's note: Participants in this discussion must follow the site's moderation policy. Profanity will be filtered. Abusive conduct is not allowed.

Thanks for posting this brief yet importantly to point article, Bored.

"The difference between the parties really couldn't be more stark. At a time when the costs of college, housing and health care are skyrocketing, middle-class incomes are stagnating, and average life spans are declining, Republicans are focused on . . . trying to make most inherited money be tax-free? Actually, yes.

Democrats, meanwhile, want to tax the winners of our birth lottery like FDR did, both to help pay for the programs that people need and to try to prevent our society from turning into a rigid caste system. It's the difference between a new Gilded Age and a new New Deal.

But that's not the argument that Republicans, or President Trump in particular, want to have."

It's the argument that this country is going to have for the next two years... from the Dems, while the Trumpublicans point at minorities, immigrants, the sick, the old, and the poor and call them the real enemies of America.

Mattressfidian, Boaz, MadBummer, NOBRAINSPOSTER... and the rest of the rwingers here will approve.

#1 | Posted by Corky at 2019-02-12 10:42 PM | Reply | Newsworthy 6

I am in favor of the Buffet and Gates rule with a twist. Your kids get $10 million tax free inheritance and half the rest goes to taxes.
If you give your kids too much money they might turn out to be a lying, theiving, cheating traitorous trust fund diva like Trump.

#2 | Posted by bored at 2019-02-13 12:12 AM | Reply | Newsworthy 3

The estate tax change is needed, and hard enough to get, but it is low hanging fruit compared to the other tax changes that need to be made to directly tax passive income and to raise the rates on other income to JFK era rates at least.

#3 | Posted by Corky at 2019-02-13 12:20 AM | Reply

As I have posted here countless times, this is why tinkering with W2 rates does absolutely nothing to hurt the 0.1% - which is why they use their control over the Democrat party to focus all attention on that issue. That is why the Warren proposal was killed so quickly despite it being the first Democrat policy that I agree with in about the last 15 years. Estate planning should be taken out of the tax code. When you die, you get some money exempted and the rest gets taxed as if the estate was liquidated (mark to market all securities and pay capital gains tax). I would also favor a small national VAT tax - say 3% for starters. If we could cap spending for 3-4 years, these changes would go a long way to putting our financial house in order. To summarize:

Estate Planning removed from the tax code
2% annual wealth tax on net worth over $50M
3% VAT
Cap spending at current rates for 3 years

Everyone would take a bite out of the turd sandwich but it is what is needed now with $22T in debt.

#4 | Posted by nobiasposter101 at 2019-02-13 07:42 AM | Reply

In contrast, the top 1 percent of all taxpayers (taxpayers with AGIs of $465,626 and above) earned 20.58 percent of all AGI in 2014, but paid 39.48 percent of all federal income taxes. In 2014, the top 1 percent of taxpayers accounted for more income taxes paid than the bottom 90 percent combined.Feb 1, 2017
Summary of the Latest Federal Income Tax Data, 2016 Update | Tax ...
taxfoundation.org

That's Income Taxes, not Estate Taxes

#5 | Posted by MSgt at 2019-02-13 01:19 PM | Reply | Newsworthy 1

As I have posted here countless times, this is why tinkering with W2 rates does absolutely nothing to hurt the 0.1% - which is why they use their control over the Democrat party to focus all attention on that issue. That is why the Warren proposal was killed so quickly despite it being the first Democrat policy that I agree with in about the last 15 years. Estate planning should be taken out of the tax code. When you die, you get some money exempted and the rest gets taxed as if the estate was liquidated (mark to market all securities and pay capital gains tax). I would also favor a small national VAT tax - say 3% for starters. If we could cap spending for 3-4 years, these changes would go a long way to putting our financial house in order. To summarize:

Estate Planning removed from the tax code
2% annual wealth tax on net worth over $50M
3% VAT
Cap spending at current rates for 3 years

Everyone would take a bite out of the turd sandwich but it is what is needed now with $22T in debt.

#4 | Posted by nobiasposter101

Ok sheeple please show us the elected republicans proposing ANYTHING to make the rich pay more.
OAC, Warren, and Sanders are all out their fighting against the elites. Instead of attacking the party that is DEFENDING the elites, you spend your time attacking the one that is trying to fight back.

#6 | Posted by SpeakSoftly at 2019-02-13 05:09 PM | Reply | Newsworthy 2

Instead of attacking the party that is DEFENDING the elites,

Why would he be doing that?

His only goal is to make democrats look bad.

#7 | Posted by ClownShack at 2019-02-13 05:14 PM | Reply | Newsworthy 3

"As I have posted here countless times, this is why tinkering with W2 rates does absolutely nothing to hurt the 0.1% - which is why they use their control over the Democrat party to focus all attention on that issue."

When you begin your post with an obvious lie don't expect us to read the next sentence.

#8 | Posted by danni at 2019-02-14 08:18 AM | Reply

So who holds the paper on our $22 trillion debt? What if the US declared bankruptcy? Most of the riches wealth is not fungible, it only has a real value of what someone else with cash will pay for it. So you seize a 300 ft yacht, how is that going to put food into anyone's stomach?

#9 | Posted by jdmeth at 2019-02-14 04:56 PM | Reply

#9 www.thebalance.com

The most recent data is from November 2018. The intragovernmental debt at that time was $5.8 trillion. Here's the breakdown:

The Social Security Trust Fund and Federal Disability Insurance Trust Fund - $2.87 trillion.
Office of Personnel Management Retirement - $989 billion.
Military Retirement Fund - $829 billion. This has become a big issue in funding our nation's defense and is only expected to grow.
Medicare, which includes the Federal Hospital Insurance Trust Fund and the Federal Supplementary Medical Insurance Trust Fund - $277 billion.
All other retirement funds - $192 billion.

The public debt was $15.6 trillion. It's in the Treasury Bulletin, Ownership of Federal Securities, Table OFS-2. Here is the breakdown:

Foreign - $6.2 trillion. In June 2018, China owned $1.18 trillion of U.S. debt and Japan owned $1.03 trillion. That's more than one-third of foreign holdings.
Federal Reserve - $2.46 trillion.
Mutual funds - $1.8 trillion.
State and local government, including their pension funds - $984 billion.
Private pension funds - $600 billion.
Banks - $674 billion.
Insurance companies - $226 billion.
U.S. savings bonds - $158 billion.
Other holders such as individuals, government-sponsored enterprises, brokers and dealers, bank personal trusts and estates, corporate and non-corporate businesses, and other investors - $2.4 trillion.

Bankruptcy while it sounds good... would devastate the middle class as banks, insurance companies, social security and pension plans would become worthless.

#10 | Posted by Nixon at 2019-02-15 07:29 AM | Reply

And Republicans who make $30,000/year will defend this nonsense.

#11 | Posted by JOE at 2019-02-15 08:03 AM | Reply

Comments are closed for this entry.

Home | Breaking News | Comments | User Blogs | Stats | Back Page | RSS Feed | RSS Spec | DMCA Compliance | Privacy | Copyright 2019 World Readable

Drudge Retort