Truth on Estate Tax/Death Tax never taxed in the first place, The Forgotten Rich

[Independem]

Truth on Estate Tax never taxed in the first place, The Forgotten Rich

In addition to creating the false impression that the estate tax eventually hits everyone — by mislabeling it a “death tax” — opponents routinely denounce the 45 percent top tax rate as confiscator. In fact, the rate applies only to the portion of the estate that exceeds the exemption. As a result, even estates worth more than $20 million end up paying only about 20 percent in taxes.

Another misleading argument is that the estate tax represents double taxation. In truth, much of the wealth that is taxed at death has never been taxed before. That’s because such wealth is often accrued in the form of capital gains on stocks, real estate and other investments. Capital gains are not taxed until an asset is sold. Obviously, if someone dies owning an asset, he or she never sold it and thus never paid tax on the gain.

http://www.nytimes.com/2009/04/02/opinion/02thu1.html

The Multi Millionaires that own the media twist the truth or in the real world lie on a regular bases. Much of the tax that comes on estates after death have never paid taxes on that money, they put it non taxable loopholes not to pay tax. Now when they die they don’t want to pay tax on the money then either, like the Wal-Mart family after one son and mother and father died have billions in non taxable investments and never paid taxes ever on that money. The rest of the families just want the money to change hands and never pay tax as you pay 30% tax on every nickel.

[bbinacan]

1. Double tax

Even if in unsold stocks, the money that bought those stocks was likely taxed previously. Like income, sales of other assets with a cap gains tax, etc.

Just a thought.

[COLGATE4]

2. But any gain has not been taxed. In addition, as Anthony Weiner

correctly points out, it's not taxed twice. It's taxed once to the person who made it, and once to the person who through no effort of his/her own receives it.

[Hawkowl]

3. Hello?

Yeah the purchase price was taxed, but the difference between the purchase price and the sale price, commonly known as PROFIT, was not taxed. So are you advocating that profits never be taxed?

[Independem]

4. For The Rich by the Rich!

[fasttense]

5. They pay less on estates than what most middle class pay on income.

So a person who through no effort or work of their own, inherits a $20 million estate only pays 20% on it? That's less than what I pay on my income and I worked for that income.

What a scam.