The estate tax wasn't repealed. It just doesn't happen to apply to anyone right now. It will at the beginning of 2011. If any wealthy people are willing to off themselves for a tax break.. well, more power to them.
I think the estate tax has some severe bugs in it. While it is not good to lock up a large chunk of capital rather than have it doing something in the market, the estate tax has done a lot to kick the crap out of a lot of growing businesses with multiple partners and family run businesses.
A $5 million dollar company is not that big, the guy running it probably isn't particularly wealthy, and when he kicks it, the 6 or 7 decent jobs it created go bye-bye, and the business closes it's doors because they can't fork over the tax out of pocket as they aren't sitting on hundreds of thousands of dollars in liquid assets.
THIS is why the rank and file have a problem with the estate tax.
This is a red herring argument. All these folks would have to do is incorporate their business and there wouldn't be any inheritance issues.
When Henry Ford died, there were no estate taxes to pay. The Board just elected a new Chairman and they went right on with business. Any business with any revenue at all could incorporate and be in the same boat.
Gramps, you are just frikin wrong. Period.
Lets say me and my brother start a business, and we incorporate as 50% owners each. Incorporation means nothing, we each still have 50% value of the company and it's assets as part of our estate. When the tax man comes, it is still calculated as part of the estate.
Ford, despite having incorporated, had the full value of ford motors as part of his estate. Because he felt his money was his, and Roosevelts was personally attacking his wealth with taxes targeted at him, he did a bunch of things to get around it.
1) He did a stock conversion and distribution. 90% of the value went into non-voting stock and 5% went into voting stock.
2) He established the Ford Foundation, which was set up as an irrevocable trust.
3) He gave the voting stock to his kids, and the non voting stock to the foundation.
4) He established in his will that the foundation would have to pay any estate taxes as the trust.
His heirs did not retain access to the money in the foundation. What they did maintain was the control of ford motors. In order to do this, Ford had to go public. float a bunch of stock, get sued buy the shareholders, and engineer buying back of most of the stock by himself.
Most small businesses cannot operate by turning all assets over to an irrevocable trust wrapped within a philanthropic foundation after carrying out lots of gymnastics. Heck, they can't afford an IPO to begin with.
It's redistribution of wealth .. from a few rich people to the government who than can give to other people more 'deserving'.
This is special though .. get rid of oligarchy .. coming from a president who got more money from Wall Street than the other candidates .. a president who has 'royally' helped out GS in his short time as president. An administration who has an ex GS VP as financial adviser.
The government can tax the living and the dead, as Raz points out can destroy companies when the originators die off. Talk about legacy to leave your family .. sorry - the government is more important and can take a good portion of that legacy .. because it didn't tax you enough in life - so it must take more all because you died. I think that people that don't have rich family to inherit an estate, company, money are just jealous .. greedy is another word for it. I don't stand to make any money when anyone in my family dies ... but I sure would hate to have to sell off the property just to appease the taxman.
Just say no to oligarchy ... phpt !!!
K Street comes to the Defense of Rangel
I'm sure there are no strings attached .. for past, present or future considerations. Gee .. why would the rich give money to Rangel ... Follow the Money !
lamparty
What amazes me, is how they have brain washed their peon lackeys into believing this is the way things are supposed to be in the USA!