Who’d Gain From an Estate Tax Rollback: The 0.2 Percenters

[artradley]

The part where he said that the 30 million was never taxed, it was.

Which $30M?

He said if the parents sell the stock before dying they pay capital gains on the $30. If the kids inherit the stock and immediately sell it, no tax is ever paid on he $30M.

 

[Huey Grey]

No they shouldn't. Why do you want to steal that money from the family? We have no right to it.

Maybe because the family didn't earn the money. The person working did.

 

[RNHawk]

Which $30M?

He said if the parents sell the stock before dying they pay capital gains on the $30. If the kids inherit the stock and immediately sell it, no tax is ever paid on he $30M.

His premises was on them selling it. That 30 million will be taxed, so saying no tax is paid on it is false

 

[artradley]

His premises was on them selling it. That 30 million will be taxed, so saying no tax is paid on it is false

You have to stop using pronouns. Who the "f" is "them?"

The. Kids. Will. Pay. No. Tax.

And he said the parents would have paid tax if they sold the stocks before dying.

Everything he said is true.

 

[bhawk24bob]

Detrimental to democracy? How so?

I give HROT too much credit sometimes like when I assume that everyone understands history and what happens when a small group amasses wealth that gets passed on from generation to generation. I don't think that's the vision that 99.999999999% of Americans have for the future, and we should be doing anything we can to prevent it

This is one of the items that idealogues latch onto, conservatives toe the line that it's double taxation when in reality......it's not

 

[Noble Hawk]

I give HROT too much credit sometimes like when I assume that everyone understands history and what happens when a small group amasses wealth that gets passed on from generation to generation. I don't think that's the vision that 99.999999999% of Americans have for the future, and we should be doing anything we can to prevent it

This is one of the items that idealogues latch onto, conservatives toe the line that it's double taxation when in reality......it's not

Thank you for that. I got a good chuckle. Nothing better than someone making a completely ignorant comment and then backing it up with attempted condescension and bluster. You didn’t answer the simple question but I suspect it is because you are incapable. Don’t feel bad, no one could answer that idiotic if an assertion.

 

[joelbc1]

That number would include most of HROT correct?

 

[theiacowtipper]

So? His parents earned the money. The paid taxes on those earnings. If their desire is that money be spent on providing their child with a life of leisure, so be it.

But. They. Did. Not. Pay. Taxes. On. That. Money. Or at least most of it. Most estates consist primarily of unrealized capital gains which have never been taxed. I have no problem with a parent leaving someone a ten foot high stack of money. No tax. But unrealized capital gains should be taxed when the asset is sold.

 

[tarheelbybirth]

You have to stop using pronouns. Who the "f" is "them?"

The. Kids. Will. Pay. No. Tax.

And he said the parents would have paid tax if they sold the stocks before dying.

Everything he said is true.

Baffling. Truly.

 

[MitchL]

This proposal would allow a spoiled rich kid to pay no federal taxes for a lifetime and still live in luxury. Inherit millions in capital gains from parents. Cash out those gains. Then live on the proceeds.

And the effing cons still don't realize this outcome!

 

[tarheelbybirth]

Yes but that rule already exists before this billl

Ummm...what rule? Here's the current set-up. The heir gets the capital at a step-up in basis to it's current market value...they pay no taxes on the capital gain IF they sell it immediately.

BUT...they pay an estate tax designed to capture at least part of that value. That's what the estate tax was always designed to do. And it was the idea of the wealthy because they were having to spend a fair amount of money keeping records on their purchases of capital to account for the original values. The estate tax paired with the step-up relieved them of the onerous record keeping that complicated an inheritance. Now they could just pass it down at the value it possessed when they died and the estate paid a flat tax that captured some of that lost capital gains tax.

What the GOP is proposing is to do away with the estate tax while still allowing capital to pass down at the current value. All capital gains on the assets are lost with no way to capture them. It is a MASSIVE welfare program for the very, very, very, very wealthy.

 

[RNHawk]

You have to stop using pronouns. Who the "f" is "them?"

The. Kids. Will. Pay. No. Tax.

And he said the parents would have paid tax if they sold the stocks before dying.

Everything he said is true.

SMH

 

[RNHawk]

Baffling. Truly.

What’s truly baffling is saying that 30 million never gets taxed after the parents sell the stock and then saying the kids can sell something that has already been sold

 

[Hawkeye009]

What’s truly baffling is saying that 30 million never gets taxed after the parents sell the stock and then saying the kids can sell something that has already been sold

You remain confused. It was a comparison, not occurrences in succession.

 

[theiacowtipper]

What’s truly baffling is saying that 30 million never gets taxed after the parents sell the stock and then saying the kids can sell something that has already been sold

Why do you keep doubling down on being wrong? No poster said this happened. Of course, that's exactly what Republicans are currently proposing, to eliminate the estate tax and keep the step up. The point made was that the parents could pass a capital gain to a child who could cash that gain, never pay taxes again

 

[RNHawk]

Why do you keep doubling down on being wrong? No poster said this happened. Of course, that's exactly what Republicans are currently proposing, to eliminate the estate tax and keep the step up. The point made was that the parents could pass a capital gain to a child who could cash that gain, never pay taxes again

the way he wrote that paragraph can be certainly interpreted the way I have been interpreting it

 

[B1GDeal]

RN is confused or trolling. If parents had $10 mil and it increases to $40 mil and they die... leaving this to their kids and the kids immediately sell it for $40 mil they get $40 mil without tax paid on the $30 mil increase. If parents would sell before they die the $30 mil would be taxed. So, these folks tend to hold assets and pass them along so the taxes aren't paid.

 

[tarheelbybirth]

the way he wrote that paragraph can be certainly interpreted the way I have been interpreting it

No it couldn't unless you're completely daft.

I'm not sure you understand what's happening here. They're doing away with the estate tax AND keeping the step up in basis. That means the kid inherits the goodies at their current value.

Situation One: The parents own stock they bought at $10M that they sell for $40M...they owe capital gains taxes on the $30M appreciated value.

Situation Two: They croak and pass it down to Jr...he gets it at $40M and could sell it that day walking away with the full $40M - that's $30M that was never....ever...taxed. Double taxation isn't even a concern here.

Does THAT help?

 

[bhawk24bob]

Thank you for that. I got a good chuckle. Nothing better than someone making a completely ignorant comment and then backing it up with attempted condescension and bluster. You didn’t answer the simple question but I suspect it is because you are incapable. Don’t feel bad, no one could answer that idiotic if an assertion.

I'll admit that I take for granted my critical thinking skills, ability to view issues from a 5, 10, 30k' level, etc.