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General discussion

A new perspective on the estate tax

Apr 16, 2005 2:51AM PDT

(An e-mail I sent to Sen. Kay Bailey Hutchinson, the more moderate of "my" two Republican Senators).

Please oppose the move to extend the elimination of the estate tax, which benefits only the wealthiest 1% of Americans. I suggest that instead the exemption be set at 2 million dollars (indexed annually for inflation) and the revenue thus generated be used to return the Alternative Minimum Tax to being a tax only on the wealthy, rather than the middle class. If the exemptions for the AMT had been indexed for inflation, it would only affect those earning over $1.2 million annually. Projections say, however, that by the time the estate tax phaseout stops, the AMT will affect 2/3 of Americans with annual incomes from $50-100,000 -- the middle class. The AMT is much more grossly unfair, and to more people, than the estate tax. Please help the majority of your constituents, not merely the favored (and wealthy) few.

-- Dave K, Speakeasy Moderator
click here to email semods4@yahoo.com

The opinions expressed above are my own,
and do not necessarily reflect those of CNET!

Discussion is locked

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No Dave, they are certainly NOT about...
Apr 18, 2005 5:45AM PDT

taxation without representation. They are about EXACTLY what is happening today and concern taxing for the benefit of others (also known as SOCIAL PROGRAMS). Your blatently incorrect assumption makes one wonder if you read the quotes or if you have ever "wasted" your time actually reading what our nation's founders had to say during and immediately after its founding.

"I cannot undertake to lay my finger on that article of the Constitution which granted a right to Congress of expending, on objects of benevolence, the money of their constituents...." --James Madison

Constituents tends to indicate that the Congress spoken of is REPRESENTING someone.

If you would only READ rather than skimming you would not taste the foot so often.

"To compel a man to furnish contributions of money for the propagation of opinions which he disbelieves and abhors is sinful and tyrannical. ... A wise and frugal government...shall not take from the mouth of labor the bread it has earned. ... Congress has not unlimited powers to provide for the general welfare but only those specifically enumerated. ... Would it not be better to simplify the system of taxation rather than to spread it over such a variety of subjects and pass through so many new hands?" --Thomas Jefferson

Again speaking not of no representation but of the unconstitutional use of taxes forced upon constituents by their representatives.

The rest are also of the same vein--such taxation is NOT within the limited scope of the constitution.

"For an illustration of the difference between proportionate and progressive taxation, we can look to the Bible. There, tithing is explained as the economic basis of our Judaic-Christian religions. The Lord says you shall contribute one-tenth and He says, 'If I prosper you 10 times as much you will give 10 times as much.' That is proportionate -- but look what happens today when you start computing Caesar's share. A man of average income who suddenly prospered ten times as much would find his personal income tax increased 43 times." --Ronald Reagan

I am unable to find anything in the bible that indicates that Jesus went around saying "render unto Caesar the things that are Caesar?s and when you die render it all or as much as he wants of it". Can you (bet you can't!)?

I can find many instances in which inheritance was spoken of and nothing was mentioned with splitting any inheritance with Caesar, or the priests or the village elders or anyone else and I'll bet you can too (bet you won't try as it would be self defeating).

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Jesus did say
Apr 18, 2005 8:31AM PDT
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He said it to the rich young ruler who had made a god of his
Apr 18, 2005 11:24AM PDT

wealth. It was not a generalized teaching such as 'Love one another'.

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Is there a difference
Apr 18, 2005 1:08PM PDT
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Sure, it is quite possible that the rich old guy has not let
Apr 18, 2005 4:12PM PDT

wealth become his God. In fact, he needs his money to meet the needs of his family far more than the young guy with few responsibilities. Jesus told us that, if we don't take care of our families properly, we are worse than the unsaved person.

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(NT) (NT) The rich old guy has had longer for money to corrupt
Apr 20, 2005 12:39AM PDT
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(NT) (NT) That's an answer to what?
Apr 20, 2005 6:52AM PDT
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OK I'll try to explain
Apr 20, 2005 11:05PM PDT

Just because a person is old and rich doesn't mean that the money isn't his god.

Jesus understood what was important to the rich young ruler. He had fallen into a common trap. He figured that, since he had obeyed the dos and don'ts of the religious laws, he was doing all that was required. He also believed that God smiled on him because he was rich. It was believed that God's favor was shown with good things. Reminds me of some of the televangelists that say that if you are poor or sick that your faith isn't great enough.

OK, this isn't going well. What I'm trying to say is that the longer you've had wealth, the less likely you are to give it up. The rich young ruler had money all his life. The rich old guy has probably had it even longer. He probably got rich by grabbing as much as he can.

I understand the necessity of exempting family farms and businesses (to a certain extent) so they don't have to be sold. Of course, people being people, the multibillion dollar business or the estate (redefined as a family farm) could be in that category just like millionaires getting farm subsidies. It is my understanding that people with large estates in Great Britain get insurance policies that pay the very large estate taxes. Sounds like a good solution to me.

I have to go get dressed for work now. I'll be in and out for a while. I worked yesterday and I won't get another day off until May 1.

click here to email semods4@yahoo.com

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OK, but I didn't say that the rich old guy doesn't have the
Apr 20, 2005 11:20PM PDT

same problem as the rich young guy. If he does, if he has made his wealth his God, he should do exactly what Jesus told the rich young guy to do. If he does, then the inheritance tax question is moot.

My point is twofold. First, Jesus did not teach that all wealthy people should sell everything and give it to the poor. His encounter with the young man revolved around what was important to the young man rather than the specific issue of wealth. Second, Jesus did not say that the state should take all your money after you die. He said to give it to the poor. The state doesn't get anything except what legitimately belongs to it.

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He didn't say it AFTER coming out of the....
Apr 19, 2005 7:30AM PDT

tomb and just prior to departing this earth but to get people to follow him in life which wouldn't be associated with any inheritance.

Even if we wanted to grant that to you though it still wouldn't equate to "give everything you have to Caesar and follow me into a government welfare state".

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Inheritance [u]is[/u] circumstance!
Apr 18, 2005 4:21PM PDT

We all swim together or we all sink individually. Don't y'all fear backlash from the left at all? The logic is simple and overwhelming, and the tipping point is closer than you might imagine. One more little Leona, or one too many itty Marie Antoinettes... and POW! It's getting worse and worse.

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That conjures up an image of hordes of leftists taking their
Apr 19, 2005 1:32AM PDT

revenge as they rush the ramparts of ....

No, no. That was Les Miserables. That was imaginary.

Switch back to reality.

There are not hordes of brave leftists.

Wink

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Sorry to do this !!
Apr 19, 2005 3:45AM PDT

Are you calling John F'n Kerry a coward !!? Of course, it depends on the size of your horde.

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(NT) (NT) Freudian slip?
Apr 19, 2005 7:41AM PDT
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Hypothetical
Apr 17, 2005 1:30AM PDT

There is no estate tax that I am aware of for spouses. So if/when Bill or Melinda Gates dies, the survivor can marry one of their children. Male or female, doesn't matter. Once they are adults why not? Then no estate tax. And if there is still that taboo about incest -- even though adults, c'mon, get with the modern world!! -- one of the spouses can marry them. Oh wait, two spouses? Well, again --get with the modern world!! -- again, no estate tax.

Evie Happy

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(NT) (NT) Or, if there are any pets involved...
Apr 17, 2005 2:23AM PDT
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Much easier ...
Apr 17, 2005 5:19AM PDT

... leave it all to Micro Soft the cat with his child as executor. Wink

Evie Happy

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That would leave the other kids out in the cold unless a
Apr 17, 2005 5:39AM PDT

modern society would let the surviving parent marry all the kids. Wait! We need new common property laws. How do multiple surviving spouses divvy up the goods? I think the ACLU will be needed to intervene to write new law for the nearest sympathetic judge.

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So, when you think it is your taxes going up Dave, you
Apr 17, 2005 5:23AM PDT

think they should be cut at the expense of the 'wealthy'?

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was JFK wrong
Apr 18, 2005 11:53PM PDT

In meeting the demands of war finance, the individual income tax moved from a selective tax imposed on the wealthy to the means by which the great majority of our citizens participates in paying for well over one-half of our total budget receipts. It is supplemented by the corporation income tax, which provides for another quarter of the total.
.
...reviewed with the aim of assuring non-discriminatory treatment Remedial legislation in these fields would enlarge the revenues and contribute to a fair and sound tax structure.
.
Whenever one taxpayer is permitted to pay less, someone else must be asked to pay more.

is this a selective tax?
April 20, 1961

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WRONG !!!!!
Apr 19, 2005 2:58AM PDT

This is one of the largest mistakes Liberals make with taxes. "Whenever one taxpayer is permitted to pay less, someone else must be asked to pay more". NOT TRUE. As was true with JFK and RWR, tax cuts created growth, created more taxpayers, not just the same earners paying more. Tax cuts are NOT a zero sum balance. Static vs Dynamic.

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Careful!
Apr 19, 2005 3:15AM PDT

You'll be spouting how zero taxes will raise the mostest revenues in a minute.

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(NT) (NT) Sigh, I understand the Laffer Curve
Apr 19, 2005 3:20AM PDT
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Ah, the laughable Laffer curve, as valuable an insight
Apr 20, 2005 8:06AM PDT

as you can expect from something drawn on a cocktail napkin.

The only things certain in the Laffer curve are the ends, 100% taxation, and 0% taxation, all the rest is unfounded speculation. Every other industrialized country in the world has higher taxes than the US and seem to be doing just fine, most problems in those countries, as in the US are short term problems that will solve themselves eventually. I am thinking about Germany suffering under the burden of reunification, or Japan from its banking collapse. France does extraordinarily well with high taxes, a large extra-taxation economy, subsidies here there and everywhere, and social programs up the wazoo.

What is so fragile about the American economy that it can't stand even a little bit of taxation? You can't tax corporations, you'll slow growth and drive them away; can't tax rich people, you'll slow investment; can't tax production, you'll make the US uncompetitive. And yet every other country carries a much larger tax burden and seems to be doing fine in the long term. Germany used to kick the US butt economically, so did Japan and both had higher tax rates. This whole controversy is all Voodoo Economics, worthy of cocktail bar conversation after half a dozen drinks with diagrams on wet napkins and nothing else.

Rob Boyter

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I keep seeing the claim
Apr 20, 2005 10:46AM PDT
Every other industrialized country in the world has higher taxes than the US

Is that more than my federal income tax plus my state income tax, plus my FICA payments, plus my car tags, plus my property tax on my car, plus my property tax on a piece of land, plus property tax on my mobile home, plus sales tax, plus excise taxes, plus 'sin taxes', plus any other taxes, required fees (permits to build, add, inspect, tear down, etc)and so forth.

Does their total cost still come to so much more than ours. ..... in 2000, when the boom and bubble pushed tax burdens to a record high, and Tax Freedom Day was postponed until May 3.

This year it is calculate to be April 17.

?The federal government cut taxes every year for the last four years,? said Tax Foundation President Scott Hodge, ?and because the bubble in 1999 and 2000 boosted tax collections to artificially high levels, the drop since then is all the more dramatic. Now the tax burden has resumed its more typical upward course. As economic growth pushes people into higher tax brackets, tax collections grow faster than incomes.?

....................?Despite all the tax cuts that the federal government has passed recently, Americans will still spend more on taxes than they spend on food, clothing and medical care combined,? said Hodge.

............In 2005, Americans will work 70 days to afford their federal taxes and 37 more days to afford state and local taxes.



Ok, 70 plus 37 equals 107. 107 divided by 365 equal 29.315% of all the days in the year, not just business days.

Ok, so all these other countries, are those citizens working more than a 107 days a year for the government. And then BTW getting criticized by the rest of the world for not caring enough to give enough.

JMO

Roger

click here to email semods4@yahoo.com
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And in addition
Apr 20, 2005 10:49AM PDT
You can't tax corporations,

Let's not ignore the realism in saying there is no truly coporate tax, since all such taxes and fees are merely passed onto the consumer in price.

I'm not against corporate taxation on principle, but I think it's dumb to pretend that that tax money comes from faceless nameless companies and not people. It's the same mentality that a jury awards unreasonable damages (sometimes) because "he won't have to pay it, the insurance company will".

JMO

Roger

click here to email semods4@yahoo.com
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One thing you apparently haven't noticed in your world
Apr 20, 2005 11:02AM PDT

survey. The level of innovation is very low in high tax countries. I can't think of any technology in which France is leading the way. That's one problem for the French language. There's nothing written in French that's really worth reading.

BTW, I checked unemployment rates to see how well those European economies are doing. Latest figure for France is 9.4%, Germany 9%, USA 5.5%. I guess they showed us about that dumb old Laffer Curve.

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Fact Check AGAIN
Apr 20, 2005 11:35AM PDT
Every other industrialized country in the world has higher taxes than the US and seem to be doing just fine,

Their economic growth is stagnant. I suspect the only reason for Canada's relative prosperity of late is due to increased oil production.
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For those who may be ignorant
Apr 20, 2005 10:50PM PDT
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Please don't confuse those who already have their minds made
Apr 20, 2005 11:23PM PDT

up. They want to sleep comfortably within their ignorance.

Devil