Clinton's new 'tax the rich plan'

[glenn1]

Red meat for those inclined to support this sort of thing. You progressive folks out there happy with this - not enough, too much, just right?

1. A 4% surtax over $5MM
2. "Buffett Rule" where income over $1MM pays at least a 30 percent tax rate.
3. Estate tax exemption from $5.5MM to $3.5MMM

http://www.npr.org/2016/01/13/462944798/hillary-clinton-s-new-tax-proposal-likely-wont-affect-you?

 

[Indus]

She's grasping for straws or a rope for a lifeline to the nomination.. totally fake politician.

 

[glenn1]

She's grasping for straws or a rope for a lifeline to the nomination.. totally fake politician.

I wouldn't disagree with you on any of those points. That being said, we can still evaluate the proposal on the merits or lack thereof.

 

[ivwshane]

Does it actually tax the money rich people make or is it simply another feel good tax that rich people can or already do avoid?

 

[Strk]

She's grasping for straws or a rope for a lifeline to the nomination.. totally fake politician.

She has to the closer we get to the primaries. She is starting to lose in some polls and people are paying more attention. You actually had polls with Cruz and Trump vs Clinton and Cruz and Trump vs Sanders. Clinton was actually losing in some of them while Sanders actually was getting landslide numbers.

 

[Indus]

I totally expect her poll numbers to DROP because of this.. the 1 thing people like no matter what side of the political spectrum is their estate tax being low.

 

[fskimospy]

I would prefer we eliminate the estate tax exemption instead of lower it.

 

[Subyman]

I don't care for estate taxes. The government has no business dipping its finger into wealth passed between generations. I understand the mentality behind it, but I think there are better ways to control runaway wealth than to confiscate a dead person's money.

 

[IronWing]

I don't care for estate taxes. The government has no business dipping its finger into wealth passed between generations. I understand the mentality behind it, but I think there are better ways to control runaway wealth than to confiscate a dead person's money.

Dead people don't vote so it's the perfect tax.

... I didn't care no more about him, because I don't take no stock in dead people.

 

[BxgJ]

Dead people don't vote so it's the perfect tax.

But their heirs do......

 

[IronWing]

But their heirs do......

But they'll have less money to buy politicians.

Edit: To be perfectly serious, I'd rather see higher estate taxes and lower income taxes than the reverse; taxing inherited wealth before taxing productivity.

 

[fskimospy]

I don't care for estate taxes. The government has no business dipping its finger into wealth passed between generations. I understand the mentality behind it, but I think there are better ways to control runaway wealth than to confiscate a dead person's money.

The government usually taxes transactions between individuals.

The estate tax actually serves as a pretty amazing way for people to permanently avoid taxes on their investments. If I buy a stock for $100 and sell it for $200 I pay capital gains on the $100. If my mom buys a stock for $100 which becomes $200 and then dies and leaves it to me in her will I not only pay zero estate taxes (she's not worth $5 million) but when I take ownership of the stock my cost basis becomes $200. I sell the stock and pay zero tax.

What a scam!

 

[glenn1]

The government usually taxes transactions between individuals.

The estate tax actually serves as a pretty amazing way for people to permanently avoid taxes on their investments. If I buy a stock for $100 and sell it for $200 I pay capital gains on the $100. If my mom buys a stock for $100 which becomes $200 and then dies and leaves it to me in her will I not only pay zero estate taxes (she's not worth $5 million) but when I take ownership of the stock my cost basis becomes $200. I sell the stock and pay zero tax.

What a scam!

Feel free to make that change, people will just shift their assets towards life insurance policies instead since the proceeds to beneficiaries are exempt from taxation. Or place them into trusts and other estate friendly vehicles.

 

[Subyman]

The government usually taxes transactions between individuals.

The estate tax actually serves as a pretty amazing way for people to permanently avoid taxes on their investments. If I buy a stock for $100 and sell it for $200 I pay capital gains on the $100. If my mom buys a stock for $100 which becomes $200 and then dies and leaves it to me in her will I not only pay zero estate taxes (she's not worth $5 million) but when I take ownership of the stock my cost basis becomes $200. I sell the stock and pay zero tax.

What a scam!

Then fix that loop hole. :thumbsup:

However, I don't believe that is how it works because I am going through a similar situation right now. I think it depends on how the funds are structured, but I certainly had to pay income tax on investments from a deceased parent. I'm not an expert in the area of that specific type of finance though.

 

[fskimospy]

Feel free to make that change, people will just shift their assets towards life insurance policies instead since the proceeds to beneficiaries are exempt from taxation. Or place them into trusts and other estate friendly vehicles.

Oh that would only be the start, but it's the most obvious start.

 

[Brainonska511]

But their heirs do......

Heirs don't pay the estate tax. The estate of the dead person pays the estate tax.

 

[fskimospy]

Then fix that loop hole. :thumbsup:

However, I don't believe that is how it works because I am going through a similar situation right now. I think it depends on how the funds are structured, but I certainly had to pay income tax on investments from a deceased parent. I'm not an expert in the area of that specific type of finance though.

It's definitely how it works normally, but yes it can change based on the structure of the estate. Here's a good piece on it:

https://medium.com/bull-market/the-...-should-want-to-close-4f061b2fac64#.rejdezcqu

 

[BxgJ]

Heirs don't pay the estate tax. The estate of the dead person pays the estate tax.

I'm aware of that, was saying the heirs (could) vote, and they notice that the estate is less due to taxes.

 

[Brainonska511]

I'm aware of that, was saying the heirs (could) vote, and they notice that the estate is less due to taxes.

My apologies. I misread.

I just don't see the big fight over the estate tax. From what I've seen, ~2 in every 1000 estates will owe some estate tax, and there are plenty of ways to protect assets in an estate from the tax.

 

[Fanatical Meat]

She's grasping for straws or a rope for a lifeline to the nomination.. totally fake politician.

Not that I disagree can you name candidates that have had a real chance of getting elected that didn't fit this description on an issue or two over the last 20 years.

Even Bernie has had some ambiguous talk about guns
More than 20 years ago but maybe Ross Perot although I do remember him wanting the Presidency as kind of his final achievement and there wasn't a bunch of policy records on him

 

[senseamp]

Good ideas all.

 

[1prophet]

Thank you Madame Secretary, as long as you don't pick on us corporate types you will definitely have our vote.




http://www.huffingtonpost.com/news/apple-tax-evasion/

 

[dainthomas]

Heirs don't pay the estate tax. The estate of the dead person pays the estate tax.

Semantics. The heirs effectively pay it.

 

[Sonikku]

Nothing that lightens the coin purse of the elite is going to be made law. These guys run congress, the statement is nothing but pandering.

 

[Fanatical Meat]

Nothing that lightens the coin purse of the elite is going to be made law. These guys run congress, the statement is nothing but pandering.

Sadly I agree just look at the ATM tax. The tax was originally designed to get a minimum tax from moderately wealthy people today those same people have enough write offs to avoid the tax but an upper middle class family may have to pay it.