Permanent Repeal of Death Tax Benefits Bush Cabinet Millions in Tax Saving

[kerrygoddess]

Permanent Repeal of Death Tax Benefits Bush Cabinet Millions in Tax Savings
July 25th, 2005

Henry Waxman’s GRMO released a Fact Sheet under Administration Oversight today showing the savings of Bush and his Cabinet, if the repeal of the Estate Tax is made permanent. Here’s a few quips from the PDF…

President Bush’s 2001 tax cut bill (P.L. 107-16) instituted a structured phase-out of the estate tax, reducing it gradually until 2010, when the tax is completely repealed. There is, however, a sunset provision in the tax cut bill, which would cause the estate tax to be reinstated and reset at its 2001 levels on January 1, 2011. H.R. 8, which passed the House on April 13, 2005, would make repeal of the estate tax permanent by eliminating the sunset provision.1 According to the Urban Institute-Brookings Institution Tax Policy Center, permanent repeal of the estate tax would cost the government $270 billion over the next 10 years.

The estate tax, the most progressive American tax, is paid only by the very wealthy. The top 5% of taxpayers pay almost 99% of estate taxes, and the top tenth of 1% of taxpayers pay more than 33%.3 The vast majority of Americans are already exempt from the estate tax. As a result, they will receive no benefit at all from making the repeal permanent.

Those with much to gain from the repeal include the President and his Cabinet. Based on estimates of the net worth of President Bush, Vice President Cheney, and each of the Cabinet members, the President, Vice President, and the Cabinet are estimated to receive a total tax benefit of between $91 million and $344 million if the estate tax repeal is made permanent. The President himself is estimated to save between $787,000 and $6.2 million, while Vice President Cheney is estimated to save between $12.6 million and $60.7 million.

MORE & LINKS - http://blog.thedemocraticdaily.com/?p=65

[AtomicKitten]

1. Oh, that's so precious.

And even more so are all the dumbass poor Republicans willing to carry the water for the rich Republicans, completely bamboozled by changing the name from inheritance to death tax, and damned if they aren't dead set against it. Except it doesn't apply to them. Nor to anyone they know. And they'll probably have to pay more in other taxes at the state level to make up for the deficit in the economy. But they'll go to their grave demanding it be made permanent. Good sheep. Baaaaaaaaaa.

[kerrygoddess]

2. The party of the bamboozling ...

Strikes again.

[Yupster]

6. It hit me

When my aunt died, she had an estate of about $1.5 million.

She didn't pay it. She was deceased.

I paid it. So did my parents, siblings, children, nephews and neices and the church, and the World Wildlife Fund, and the abandoned dog shelter, and the racedog adoption agency, and about 15 other charities, almost all conservation related.

And none of us was in the top 1 % of anything.

The Democratic leadership in congress has put up a compromise proposal of around $ 5 million exempt. To me that's a reasonable compromise.

When my aunt died, the level was $ 600,000 and in my opinion, that was way too low. She owned a house in New York City. That was close to the limit right there. I think the limit now is about $ 1.5 million. That's probably still too low, but $ 3 to $ 5 million wuld pretty much eliminate anyone from the middle class from paying it, or small business owners.

[AtomicKitten]

7. Dem compromise was right-on

Too bad the Repubs didn't go for it.

[TahitiNut]

3. And capital assets in an estate continue to escape gains taxes.

Capital assets (stock, property, etc.) in an estate are valuated at market at the time the estate is formed by the death of the owner. When the inheritor sells them, the basis excludes all appreciation from prior to the time the estate was formed.

Thus, not only does the inheritor not pay taxes on the value of the estate, the estate pays no capital gains taxes. This is a double exemption for the "ownership class" ... on income that the recipient did not earn by their labor.

Meanwhile, labor income is now taxed at the highest rates of all.

[applegrove]

4. If you have a good income tax system. You don't need 'death tax'.

[bvar22]

5. Repealing the Estate Tax will INCREASE taxes on the other 98%.

Repealing the Estate Tax will DIRECTLY INCREASE taxes on the other 98% (all the rest of us).
The US is in DEFICIT, and we will be in deficit for a LOOOONG time. Eventually, those bills MUST be paid. If the Estate Tax is made permanent, the ULTRA RICH will get MILLIONS. Someone else will have to make up that difference.....ALL the rest of us.

Repealing the Estate Tax shifts that tax liability and ALL accompanying Finance Charges to the Middle Class!

And the STUPID Working Class Republican voters believe they are getting a Tax Break. the greedy republicans are just refinancing the deficit and sending the BILL (and the BILL for Iraq) to the Middle Class Children.

WAKE THE FUCK UP!!!!
Someone will have to PAY THESE BILLS!

[no_hypocrisy]

8. The REAL reason why estate tax to be made permanent:

The sunset provision means there would be a LOT OF unexplained deaths in 2010 as wealthy beneficiaries try to help their testators/testatrixes die by December 31 while the rate is 0%. Congress would be an accessory the crime(s) as the motivation of greed compels these otherwise loving children to murder their
parent(s).