If you inherited a million dollars tomorrow what would you do?

[Truthiness Inspector]

Let's say your Aunt Sallie or Uncle Bob left you this money.

How much would you happily fork over to pay taxes, if YOU could decide the amount?

[Common Sense Party]

1. Could I also decide exactly WHERE and HOW the tax money would be spent?

Probably not...

[Truthiness Inspector]

2. Nope

Just flat out, pay the tax percentage YOU would choose.

[Donnachaidh]

3. I'd hire the same tax experts as all the other wealthy folks

And I'd tell you I'd get back to you on my answer after they were done. :evilgrin:

And if you think ANYONE would do otherwise.... :eyes:

[Truthiness Inspector]

4. No, that is not my question

I am asking YOU what YOU would happily fork over.

[Donnachaidh]

7. I'm not naive enough to answer that question n/t

[Truthiness Inspector]

8. Nothing about naivete

What would you choose to pay? Meaning, of your own volition?

[mrreowwr_kittty]

5. I would pay whatever the going estate tax rate is.

About half. It's unexpected money, why should I complain?

[Truthiness Inspector]

6. The question is how much you would choose to pay

and you say about 50%. Ok.

[Oregone]

12. 50% my ass. People with that level of assets create trusts prior to death and utilize loopholes

This ensures their incompetent offspring not only avoid starvation, but can continue to impose it upon the rest of the masses.

50% is not the going rate in the real world.

[sandnsea]

16. Up to 6 million isn't taxed at all

So it's not really a relevant question anyway.

[dysfunctional press]

26. according to this page, the current exemption is $2million...

http://www.nolo.com/article.cfm/catId/257899BC-C5FA-435D-BA9BCC083F55357E/objectId/671FF532-CEE7-49A2-9DFAFA0BBBCBEBF2/309/126/ART/

[Truthiness Inspector]

36. I picked 1 million as a round number

for the sake of discussion.

[dysfunctional press]

42. zero is a round number too- and that's how much taxes would have to be paid on $1million.

nt

[sandnsea]

47. Right, small business/farm is $6 million

Oops.

[pnwmom]

28. When the rate was that high, I know two different men who

died with that much who had no estate planning, other than a will. They were very old men who had put every penny away throughout their lives, and neither of them wanted to spend any money on setting up a trust, or whatever it is you have to do. So their families ended up paying almost 50% in estate tax, out of estates that were worth a couple million or so.

[Oregone]

32. Setting up a trust is virtually free...

You have to pay a notiery, maybe buy some software (Quicken Willmaker is good), and change titles. Easy, breezy. Too bad for your buddies, but the upper elite normally get the memo.

[dysfunctional press]

43. they probably died in the days before software...(people did, you know...)

back when lawyers were required.

[pnwmom]

55. Eighty year olds aren't generally into computers, though I know there

are some exceptions. (My mother is one.) But it's also true that these two died a number of years back. One of them was so frugal that he wrote his will by hand, rather than hiring a lawyer to do it. It did save HIM some money!

[pnwmom]

56. A trust doesn't eliminate taxes, although it allows a married couple to

combine their deductions, which -- if their total estate was under the limit -- could have that effect.

These men were both single, and as I understand it, there wasn't a way to shelter their estates that didn't involve giving the comparable amount to charity (rather than their heirs). So, the choice was to pay the amount due in taxes, or to set up your estate so it went to charity instead.

[Jamastiene]

19. That's my thinking on it too. n/t

[CaliforniaPeggy]

9. I'm not sure, but I believe my husband and I are in the upper

tax bracket.

That would mean we'd pay about 35% of it in taxes...

And that would be fine.

:shrug:

[dysfunctional press]

14. i don't think that you pay income taxes on inheiritances....

and the estate tax is nothing on estates of less than $2million.

[CaliforniaPeggy]

22. That could very well be the case...

But we are worth more than $2 million, actually...

[dysfunctional press]

31. that doesn't matter, if you're the ones getting the money.

what matters is the value of the estate being left to you.

if joe the plumber and bill gates were each left $1million by relatives- they'd both pay the same amount of taxes on it- $0

[Oregone]

10. If I could decide not only for myself, but everyone else, 75%+ would be about right...

Hell, who needs to inherit money in a capitalistic meritocracy. This would destroy the old-money elite and reconstruct our society, at a price I would happily pay.

[Truthiness Inspector]

18. How much do you earn an hour, if you work?

Because I think 75% should be taken off the top of your paycheck.

[Oregone]

24. Thats fine. Take it after Im dead.

I won't need it anymore.

[Truthiness Inspector]

29. I'd like it now, please

LOL

[Oregone]

34. And Id like a a big ass estate in another country...Dreams are fun.

[dysfunctional press]

11. the estate tax is zero on estate under $2million- so i'd fork over nothing.

i'd sell my current house, buy some property near south point on the big island, and build a self-sufficient compound using shipping containers, big enough for my wife and i, and several friends.

http://weburbanist.com/2008/05/26/cargo-container-homes-and-offices/

[sandnsea]

13. 15%

Key word being "happily".

[Oregone]

17. But how happy can one be in hell?

[sandnsea]

21. If everybody paid 15%

and there was no ability to cheat, and we didn't have a mega military, this country would be utopia.

[Oregone]

23. Ron Paul's Utopia is another man's hell.

:)

[sandnsea]

48. In estate tax?

How do you figure wealthy people paying taxes has anything to do with Ron Paul? I imagine he doesn't support estate taxes at all.

[Jamastiene]

15. I would pay off the land and home where I live now and

I would build my dream home (nothing fancy, only requirement that it has a basement) on the property. I would make sure I could cover the entire price of building the dream home based on whatever was left AFTER taxes. Honestly, having a place to call home means more than anything to me, personally. To know that it was paid for would mean a lot to me. Whatever was left over, I would buy savings bonds (maximum amount per year) and the rest I would save in the bank.

As far as the tax rate goes, I've never complained about paying taxes. I live in America. Taxes are a a part of life and a small price to pay for the services the country offers. Those roads don't maintain themselves with no money. The schools don't get built with no money. The teachers don't get paid with no money and they don't get paid enough as it is. Who pays for the services? Taxes pay for the services we take for granted every single day.

Whatever rate for millionaires that the Republicans were complaining about so much under Clinton, I'd pay it. What was it? About 44 to 47% for a million or higher? I can't remember.

The point is that this country is in shambles right now. I would want Obama to have all he needs to repair the place before we crumble the rest of the way into ruins. Besides, free money is free money. I want the place kept up. Why own land if you let the country around you turn to shit?

I have never understood the people who gripe about paying taxes, except in cases when so much more of that tax money goes to building bombs than helping people. Of course, you rarely ever hear people complain about their tax money building bombs. Most people who gripe about taxes are complaining about helping poor people. :wtf:

[Truthiness Inspector]

27. "Free money"

is not free money if someone worked for it, and already paid taxes on that income. Then if that person dies, he/she pays taxes again to leave it to the person of his/her choice.

[dysfunctional press]

38. what about large estates and trusts that are passed on, generation after generation...

with no real taxes paid on them?

btw- the estate tax becomes entirely ZERO in 2010, then comes back in 2011. SO- if i were a VERY rich guy with lots of heirs- i'd start getting nervous sometime next year.

[tkmorris]

59. That argument is nonsense

Taxes are not paid just on incomes, in fact most monies received as income have been taxed several times before they reach the person earning it as income. Taxes are paid when money changes hands, for most any reason whatsoever. You make some income? You get taxed. Spend that same money at the grocery store and it's taxed again. The grocery store then pays taxes on their net income, and if they use the money you earned way back when and passed on to them in exchange for a box of Fruit Loops, say to buy property to build a new store on, it's taxed yet again. Again and again, every time it changes hands, almost without exception.

And when Dear Old Aunt Sally regrettably dies, leaving you a million dollars, that's money changing hands. Hers to yours. What makes you think it shouldn't be taxed? What makes you so special?

[Jamastiene]

61. Exactly.

Thank you. I could not have said it better myself.

[Jamastiene]

60. Dead people don't pay taxes. n/t

[Mari333]

20. start a no kill animal shelter n/t

[anigbrowl]

25. Nothing. I'd rather give part to charity

I don't really believe in inheritance tax, on the principle that the legatee paid income or capital gains tax on it when alive. I just don't believe in double taxation.

Edited to add that the estate tax effectively only applies to amounts above $2 million in any case. I don't feel particularly sorry for people who have to pay it, but assuming the money was massed legally and taxes paid appropriately etc. etc., I still feel it's a Bad Thing.

[Oregone]

30. Even Non profits need to pay their execs...

And by some measures, 90% of what goes in, doesn't trickle out to the people they are supposed to benefit. Sadly, government is a bit more efficient than a variety of charities, although their efficiency may shuttle it to defense contractors.

[anigbrowl]

35. That's true. If I ewre to find myself unexpectedly wealthy...

I'd likely set up some sort of foundation and then spend a good bit of my time managing it directly.

[Oregone]

39. Very smart...

I would likely do the same. Im too cynical (and realistic) to trust others, to be honest.

[Celeborn Skywalker]

33. Pay off my debt,

buy a modest home with a modest yard, buy a smartcar, invest about 100,000, give $500,000 to the govt., and the rest to various charities.

[leftstreet]

37. Size 10 shoes for ALL IRAQIS n/t

[dysfunctional press]

40. because of the bush tax theft, the estate tax goes away completely in 2010, but comes back in 2011-

unless congress extends it.

can anyone guess what issue the repugs plan to run on in the midterm elections in 2010...?

[Mind_your_head]

41. I'd give it all to my bank. Yes, for sure!

:sarcasm:

[Sanctified]

44. Buy Gold and Silver.

And in regards to paying taxes, I would pay as little as possible, I hate the idea that my tax money is going to a fucking war and bailing out fat cats in the financial industry.

[gmudem]

45. Tuitions

I would pay for the rest of my college tuition and the tuitions of several of my close friends, as well as the tuitions of any family members going to college. One of my best friends had to quit school because he was drowning in debt from his student loans, and only went to 2 years at a state school and it burns me up. I would also try to help people with their heating bills and mortgages right now.

[MrSlayer]

46. I'd pay nothing if it was up to me.

But even if they took 400K of the Million I'd still be happy. 600 grand is nothing to sneeze at. I'd pay off my debt, buy two new cars, build a recording studio and invest the rest after taking a nice vacation.

[Number_Six]

49. Tempting idea....

I think the answer depends on your look at things.

A) Nice person contacts both IRS, State and Fed and cuts check.

B) Nasty person contacts travel agent, person and dough head for the Cayman Islands to open up secret account.

Just depends, yes.

[bridgit]

50. I'd get a little place on the Sacramento delta...

And a really good tax lawyer then take it form there

[TheWraith]

51. Frankly, I'd be happy to get half that.

If, say, $400,000 went to the government, I wouldn't complain about it since it's still $600k that I didn't have before.

But if it were entirely up to me, I'd pay $0 in taxes and give the $400,000 to the Red Cross, Grameen Bank, SPCA, Habitat for Humanity, et al. Ask me again once Obama's approving the budgets, and you'd probably get a different answer.

[Occulus]

52. I would pay off my debts, set up college funds for my nieces,

buy a piece of property, build a smallish two bedroom ranch home or cabin on it, drill a well, erect a wind turbine tower, cover the roof with solar panels, and donate the rest to the EMC2 corporation, which is seriously researching fusion power via Dr. Robert Bussard's Polywell design.

[earth mom]

53. Taxes are illegal, so I would pay exactly ZERO. nt

[JDPriestly]

54. My first thought was that I would give some of it to charity.

I didn't think of that because of tax issues, but because I am always sad that I can't give more. Then, after taxes (what the law requires), I would help my children and maybe fix up my house. (It's been a fixer-upper since we bought it a long time ago.)

[tkmorris]

57. Is it recess time over at Libertarian Underground?

Keerist what a dumb question. You think we're that stupid? Really?

Anyway, to give you an answer you do not deserve, when it comes to paying taxes on this or on anything else I would expect to and willingly pay what anyone else in similar circumstances pays and NOT ONE PENNY MORE.

However, when setting tax policy in a general fashion I would set a rate that was both sufficient to meet the nation's needs and quite progressive. More specifically on Estate Taxes I would propose something like a 35% tax over 2 million, and under 5 million, and 40-50% over that. Just a ballpark, it requires more careful study. I don't want to prevent anyone from passing on the fruits of their labor to their children but past a certain point it is counterproductive both to the individual and the nation. Exceptions of course would be in place for family owned businesses, farms, certain types of real estate, and so on.

Oh, and your avatar? Don't care for it personally. I like this one better.

[KakistocracyHater]

58. I'd check my state's laws & probably pay up

& I'd probably sit on the dough for awhile, I tend to do nothing with money in case of a rainy day, & I'd expect not to ever receive such a windfall again. The uber-wealthy have gone Godzilla on the markets, half in dollars half in euros? I'd watch to see who suddenly shows up in my life.

E channel had "Lottery Winners" episode one day, I sat down & watched it: alot of men bought 8 cars or some such, 1 poor guy's own brother tried to put a hit on him, cousins always showed up, lots of relatives came out of the woodwork. They all seemed to quickly lose their money & it was ALL more than a million each.

As for the cars-shoes are to women what cars are to men; see also tools & high-end makeup.

[FloridaJudy]

62. How about I give about half of it away

To charities that are actually taking care of people, and claim the deduction? One million is more than enough to meet my needs.

I don't mind paying taxes if they go to support a decent infrastructure and safety net, but I wouldn't trust this administration not to funnel it to Blackwater or hand it over to Wall Street without strings. Of course if those criminals agreed to pay their fair share as well, then a 50% tax sounds reasonable.

[leeroysphitz]

63. I'd start voting republican, bitching about my taxes and telling poor people

that they are lazy and don't deserve help.



I don't need to add the sarcasm tag, do I?

[rucky]

64. 30% sounds fair at that level.

to answer your question

[Thothmes]

65. Many of the contributors on this forum

would like the State and Federal Governments to take most of it away you in the form of taxes before you get a chance to spend any of that million.

[mwb970]

66. This reminds me of a similar discussion in "The Three Amigos".

Dusty: Hey Lucky. What are you gonna do with your share of the money?

Lucky: A car. A big, shiny, silver car. I'll drive all over Hollywood...show Flugleman a thing or two. What about you?

Dusty: New York. Maybe Paris. A lot of champagne. Parties. Be a big shot for a while.

Lucky: Yeah. How 'bout you, Ned?

Ned: I'm gonna start a foundation to help homeless children.

Dusty (quickly): That occurred to me to do that at one point too.

Lucky (quickly): I meant I would do that first, and then I would get a big, shiny car.

Ned: Let's get some more tequila.

[MiniMe]

67. I would ask the executor to wait to pay the taxes, and me, until Obama is inaugurated

Then the executor would pay what is due. It is totally hypothetical since the estate would pay the taxes, not me personally. :hi:

[mrreowwr_kittty]

68. I just looked it up and you'd pay 0% for an estate that size.

So what the FUCK are you complaining about, freeper?

[MedleyMisty]

69. I'd figure out what I needed to not have to work any more

and then the rest would be redistributed.

I'm quite fine with my current lifestyle, except for the bit where being someone else's slave means that I can't write. I'm no J.K. Rowling and have found that I can't write when I only have maybe six hours between work and sleep and much of that is taken up by social obligations.

So, yeah - give me enough to make the house and internet payments and buy food - oh, and maybe a slightly newer car (I think my 1996 Thunderbird doesn't have many years left in it) and then the rest can be used for the good of other people.