Economy Former Democrat senator says Biden’s plan to tax assets at death would hurt family businesses

[Morning Star]

Oh no, we got a flash flood of tears for the filty rich.

 

[helltoupee]

The corporate elite want this. They want to crush out the middle class and crush out small and even medium businesses. It’s disgusting watching what’s happening to western civilization and yet we stand idle.

They don't want to crush the middle class. It's precisely a middle class that shields them from the desperation of the lower classes. And we all know desperate people do desperate things, like start revolutions and shit.

So, contrary to popular belief, the ultra wealthy need that middle class. They need people who have just enough crumbs to be comfortable, people who have at least a little bit to lose. That is the elites' insurance policy from revolution.

This idea is certainly nothing new, and is part of the genius of our founding fathers - who recognized that simply controlling people by virtue of carrying the biggest club (ie. physical force) would not work as it always had in the past. They needed a way to use economic force to accomplish the same ends. And so "protecting the minority from the tyranny of the majority" was born. Only in this case the minority represents wealthy property owners, and the majority everyone else. Our founding fathers were very cognizant of the need to shield themselves from revolution. And so they set about to create a system of laws that could be 'interpreted' depending on how proficient the counsel is you can afford. And a representative government where the sentiments of the majority (democracy) could be nullified if need be.

It's actually quite clever. They were able to sell the idea that the entire country simply operated under the notion of a meritocracy, when effectively it couldn't be further from the truth. Most of the ultra wealthy in this country became that way because of leveraging the power of the government in their favor. But they sell wealth as a lottery ticket, in that if you just work hard, anyone can be a billionaire.

 

[AndroidRage]

Agree. This is a ploy to garner support from the middle class and poor to support the wealthy. Much like trickle-down economics or by giving a tax break to the wealthy, they use that money to buy more stuff which benefits us all.

Any time a politician comes out against something that the wealthy have used for generations to pass down to generational wealth they are doing so on behalf of the wealthy.

"When a person dies, their assets could be subject to estate taxes and inheritance taxes, depending on where they lived and how much they were worth. While the threat of estate taxes and inheritance taxes is real, in reality, the vast majority of estates are too small to be charged a federal estate tax—which, as of 2021, applies only if the assets of the deceased person are worth $11.70 million or more.1"

Yeah I found this with a quick google search. These rightwingers think we were born yesterday

 

[blaseblah]

What isn't working? We have the highest tax revenue in the world. What "isn't working" is that the money they have is misdirected, not that they don't have enough money. Is there anything about government spending that suggests to you that they're slowed down by a lack of funding? Lol, the national debt is like half of the global GDP, and I still have to write them a 5 figure check in the next couple weeks and they're telling me that still isn't enough. It's not going to healthcare, it's not going to any social benefits that I collect, it's going to the MIC and the ponzi scheme FDR set up.

When Jeff Bezos isn't paying any taxes, clearly something isn't working. The budget is a different conversation.

 

[ChickenBrother]

"When a person dies, their assets could be subject to estate taxes and inheritance taxes, depending on where they lived and how much they were worth. While the threat of estate taxes and inheritance taxes is real, in reality, the vast majority of estates are too small to be charged a federal estate tax—which, as of 2021, applies only if the assets of the deceased person are worth $11.70 million or more.1"

Yeah I found this with a quick google search. These rightwingers think we were born yesterday

That's literally what Biden's plan is trying to eliminate. It's what "ringwingers" and moderate Dems with any common sense are trying to preserve. Biden's proposal is that you get an immediate taxable event on day 1 after inheriting with no exemption (currently it's at $11MM). So Joe Smith who bought his farm in 1970 for $100K dies today and leaves the farm to his son Bill. The farm is now worth $5.1 million. So on day 1, Bill owes capital gains tax of 40% x $5 million = $2 million if he wants to keep that farm.

Good luck Bill keeping that farm in the family and good luck even staying afloat without a distressed asset sale and/or a backbreaking amount of debt (not even possible if the farm already has a mortgage).

 

[AWilder]

lol, so many morons didn't even read the article and are just parroting RW talking points. sad.

 

[AWilder]

That's literally what Biden's plan is trying to eliminate. It's what "ringwingers" and moderate Dems with any common sense are trying to preserve. Biden's proposal is that you get an immediate taxable event on day 1 after inheriting with no exemption (currently it's at $11MM). So Joe Smith who bought his farm in 1970 for $100K dies today and leaves the farm to his son Bill. The farm is now worth $5.1 million. So on day 1, Bill owes capital gains tax of 40% x $5 million = $2 million if he wants to keep that farm.

Good luck Bill keeping that farm in the family and good luck even staying afloat without a distressed asset sale and/or a backbreaking amount of debt (not even possible if the farm already has a mortgage).

Biden's plan would exempt businesses that stay in the family. So...

 

[ChickenBrother]

Biden's plan would exempt businesses that stay in the family. So...

That wasn't in the original proposal but it's a step in the right direction. It's also not clear what "15 years to pay the tax" means. Originally it was a 15-year payment plan (with interest) for the 40% capital gain you owe on day 1. So basically a second mortgage payment tacked onto a small business.

And personal property not classified as a small business is not exempt. Good luck being able to afford inheriting your parent's house they want to leave to you.

Any way you look at it, Biden's proposal would be another tax on small business owners/middle class worth <$11 million. A demographic that already pays higher effective tax rate than the ultra-wealthy who have access to more tax-effective structures and investments.

 

[The XL]

No more taxes. Its our money, and the government does nothing productive with it. They need to keep their hands off of this shit. People have a right to take care of their family after they're gone via the fruits of their lifelong labor. These criminal parasites need to fuck off.

 

[chardog]

Breaking: Millionaire doesn't want to see millionaires pay taxes on assets.

you act as if having a million in assets is somehow rich............................................................

you're just poor

 

[The XL]

The founders revolted over way, way, way less than what we currently put up with. Its sad to see how soft and dumbed down our population has become.

 

[The XL]

When Jeff Bezos isn't paying any taxes, clearly something isn't working. The budget is a different conversation.

Jeff Bezos and his buddies write the law via proxy, and you can bet whatever they're pushing will help him and people like him.

 

[chardog]

If it's cnbc posting this it's probably something that rich people don't want.

I don't believe for one second cnbc gives two fucks about small businesses

a million dollar asset is far from rich.... my entire city and neighboring cities are comprised of homes north of 1M. It's laughable to think there are that many rich people...... the vast majority of these folks couldnt even afford a nanny. to me, you've got to have at least a 5M dollar home and nanny/full time maid/cleaner to be considered rich. if you can afford it, but dont think it's worth the price..... you aint rich. There are levels to this, and obviously, you're peon level.

 

[chardog]

Jeff Bezos and his buddies write the law via proxy, and you can bet whatever they're pushing will help him and people like him.

the rich hate competition

 

[SaiWa]

That's literally what Biden's plan is trying to eliminate. It's what "ringwingers" and moderate Dems with any common sense are trying to preserve. Biden's proposal is that you get an immediate taxable event on day 1 after inheriting with no exemption (currently it's at $11MM). So Joe Smith who bought his farm in 1970 for $100K dies today and leaves the farm to his son Bill. The farm is now worth $5.1 million. So on day 1, Bill owes capital gains tax of 40% x $5 million = $2 million if he wants to keep that farm.

Good luck Bill keeping that farm in the family and good luck even staying afloat without a distressed asset sale and/or a backbreaking amount of debt (not even possible if the farm already has a mortgage).

No exemption my ass. You didn’t read the article nor what the White House released. If you don’t know what you are talking about then don’t post it instead of mouthing off fake news…

 

[chardog]

Its deliberate I think. I honestly don't believe these guys truly believe the idiotic shit they say.

these are folks that have shell companies to hide assets

two states have shell corporations, delaware being one of them.

Big Guy Joe Biden has a home there.............. conveniently there is a shell company named after big guy's secret service code name, where Joe earned money.
https://www.breitbart.com/2020-elec...-class-joe-is-actually-multi-millionaire-joe/

these guys are professionals that hate competition

 

[White Whale]

When Jeff Bezos isn't paying any taxes, clearly something isn't working. The budget is a different conversation.

Jeff Bezos, Elon Musk and other billionaires take out millions of dollars worth of loans by putting their art collection or cars as collateral in order to avoid paying taxes.

 

[Jack V Savage]

What isn't working? We have the highest tax revenue in the world. What "isn't working" is that the money they have is misdirected, not that they don't have enough money. Is there anything about government spending that suggests to you that they're slowed down by a lack of funding? Lol, the national debt is like half of the global GDP, and I still have to write them a 5 figure check in the next couple weeks and they're telling me that still isn't enough. It's not going to healthcare, it's not going to any social benefits that I collect, it's going to the MIC and the ponzi scheme FDR set up.

We have extremely low taxes for a developed country. And not sure what the basis for scaling one nation's debt to global GDP is, but it's less than a third. Better scaling would be debt interest to (U.S.) GDP, and that's about 1.65% (compared to almost 3% in the late '80s and over 3% in the early '90s), which is not a concerning level. Also completely irrelevant to the issue of whether taxing people who receive millions of unearned dollars is wrong or will have any particular negative impact. Also funny how with all the populist bleating of the idiot GOP, the only significant legislation passed last time they controlled the gov't was a tax cut for rich people and corporations, and they're currently crying about people who inherit millions of dollars possibly having to pay taxes on some of it. God forbid anyone actually work for a living.

 

[chardog]

"When a person dies, their assets could be subject to estate taxes and inheritance taxes, depending on where they lived and how much they were worth. While the threat of estate taxes and inheritance taxes is real, in reality, the vast majority of estates are too small to be charged a federal estate tax—which, as of 2021, applies only if the assets of the deceased person are worth $11.70 million or more.1"

Yeah I found this with a quick google search. These rightwingers think we were born yesterday

the estate tax is NOT reliable. Trump put that in, Biden already had a proposal to 3.5M, and it's really a separate entity, stepup basis doesnt have to be involved with the estate tax, because that can run out, especially if giving to multiple family members.

these are independent laws, estate tax is for the transfer on death, but if the transfer on death is based on the original value, step-up basis balloons the value to current market. Getting rid of that means that after transfer (post estate tax), you would be subject to step up basis, which is almost like a second estate tax.

 

[ChickenBrother]

No exemption my ass. You didn’t read the article nor what the White House released. If you don’t know what you are talking about then don’t post it instead of mouthing off fake news…

The original proposal did not have any exemption. Those are being negotiated and actual terms of exemption(s) if any, has not been released. The House is expected to make the tax portion of the proposed bill public sometime next week.

But since you've accused me of "mouthing off fake news," would you be so kind as to specify the explicit terms of the exemption that you've equated with your ass?