Saturday, November 21, 2009

Op-Ed Contributor - Protect the Farm, Tax the Manor -

Bereft of logic!

Link: Op-Ed Contributor - Protect the Farm, Tax the Manor -

"Thus, while a person who earns $200,000 by working must contribute more than $50,000 in federal taxes, a person who inherits $200,000, or even $200 million, pays no income taxes at all." Yes, he would pay income tax on his salary that year. And next year, when the other guy inherits, they both pay tax on their salaries and the other guys does not have to pay tax on his inheritance.

Me: If you can't get wealthy enough to retire and then allow your kids to retire early on what's left over, how is this a free country? It means people are being FORCED to work. Weird.

The estate tax system provides an essential counterpoint to this giveaway. American estate tax rates have been as high as 77 percent, so 55 percent would be reasonable when coupled with a general exemption of $1 million to $2 million.

Me: How does a crazy figure like 77% justify a crazy figure of 55%? To me it says the people who set these figures are nuts, so why trust anything they come up with? I think inheritance is similar to a cap gain--passive income. 15% across the board.

The naifs that set these rules think being rich is easy. It isn't. You just have more expensive problems.