Raw land is one type of asset that can be extremely difficult for one to convert into a cash producing asset. Yet, the estate tax levied against that property can be large.
@TheDepreso Why should someone who earns a lot of money not be taxed just because their "employer" is their dead parent? Inheritance is no different than a normal income. Why should it not be taxed? The person who initially earned the income paid tax on it. But that person is giving the income to someone else. They are being paid. How is this different than your employer at work paying you? They paid tax on their income, and they pay you to do your job. Should you not have to pay taxes?
Does the estate tax exception apply to all inheritor's or each inheritor individually? So, I understand that if I have one child, she would get the full $5m. But what if I have 5 children, is the exception $5m for each child, of only $5m of the estate (so that each child would only receive $1m tax-free)?
I agree. With time, more and more of the money supply is constantly shifting into the hands of the richest. This then creates a tighter and tighter money supply amongst the middle class and the poor. This tightening of the money supply then results in recession and then a depression. Without the money supply being rebalanced thru inheritance taxing, the economy comes to a halt as it did in the 1930's. Right now the government borrows money from the richest to keep the economy going. An inheritance tax is a much more practical way to rebalance the money supply. Without such a tax the government will go further into debt and eventually bankrupt. That would be catastrophic for the global economy.
So what if the family's wealth grows and grows? These people produce goods and services which benefit everyone; everyone's share of the pie might be smaller as a percentage, but the pie as a whole will be bigger.
To add to the against argument, a business or estate consisting of mostly illiquid assets (Land, Buildings, Equipment) might be severely impacted depending on the timing of the taxation. Employees may lose their jobs depending on the ability of the estate to pay the tax while continuing a business. There is also an argument that the exemption is too low and will impact more middle class estates. Right now 3/13/12 the law is set for the exemption to drop to $1m in 2013 with a 55% tax rate.
@mrhnm So basically you want a land owned by corporations, where the individual has absolutely no rights of any kind? You should try out the 1880-1920s. I heard that was a wonderful time in American history.
With high estate taxes, business and income taxes can be lowered or eliminated. That will keep more of the money supply where it belongs, circulating in the general public. Lower taxes on businesses will help them to succeed.
@johammbass Theft is the unlawful taking of somebody's property or possessions, without their permission, with the intent to deprive them of it. When you have a government of the people, tax is simply money that the society club together to spend in a way that benefits the society in a compromised way. Using propaganda etc to corrupt this process to get peoples' money isn't theft. That doesn't make it alright, it's just not what the word "theft" technically means, but the spirit of it is equal.
@mrhnm And the government charges you a fee for enforcing your rights. Without the government you do not have rights. You can own your house, but the guy who comes over to mow your lawn twice a week gets paid for giving you the service. The government does a whole lot more than mow your lawn.
In many circumstances, a person's estate is tied up in a business. Family farms for instance, can be asset rich, cash poor so they end up having to sell their business and liquidate the assets of the business and that is the most destructive aspect of the estate tax.
But the problem is the privately owned companies, that behave better than publicly traded companies. If the head of FORD or STARBUCKS dies suddenly - if they were subject to the estate tax - the companies would have to SELL assets to pay the government for the estate tax. People would be outraged if the company had to lay off workers, or fire them. Instead, we go after a private business owner, or farmer, who risked it all to create jobs and wealth. Why not change the way it's collected?
@mrhnm Also, you pay a fee to your landlord when you rent an apartment, why wouldn't you pay a fee to the government when you live on its land? It is essentially just a form of rent. It is an asset owned by the government, ultimately.
God I shouldn't have clicked on this video I feel so dirty. Why taxes are theft period. And saying "your still going to get blipity blipity blu..." Is so asinine.
do you have to repeat everything multiple times when you're writing something down? it is really irritating. and for everyone who is going to tell me to not watch if i don't like it, please tell my professor to not substitute these videos in lieu of his own lectures and later quizzing us on it.
Probably the most helpful thing on the internet is your videos.
favorite person on youtube
Raw land is one type of asset that can be extremely difficult for one to convert into a cash producing asset. Yet, the estate tax levied against that property can be large.
Damn, amazing video!
So that's why Billionaires "give away" all their money. (Funnel through nonprofits?)
@TheDepreso Why should someone who earns a lot of money not be taxed just because their "employer" is their dead parent? Inheritance is no different than a normal income. Why should it not be taxed? The person who initially earned the income paid tax on it. But that person is giving the income to someone else. They are being paid. How is this different than your employer at work paying you? They paid tax on their income, and they pay you to do your job. Should you not have to pay taxes?
@essandee Certainly but I think you could there are ways to fund without taxes. Or if you must tax without an income tax and inheritance tax.
Does the estate tax exception apply to all inheritor's or each inheritor individually? So, I understand that if I have one child, she would get the full $5m. But what if I have 5 children, is the exception $5m for each child, of only $5m of the estate (so that each child would only receive $1m tax-free)?
When estate worths 655m$
The daughter: OK.
I agree. With time, more and more of the money supply is constantly shifting into the hands of the richest. This then creates a tighter and tighter money supply amongst the middle class and the poor. This tightening of the money supply then results in recession and then a depression. Without the money supply being rebalanced thru inheritance taxing, the economy comes to a halt as it did in the 1930's. Right now the government borrows money from the richest to keep the economy going. An inheritance tax is a much more practical way to rebalance the money supply. Without such a tax the government will go further into debt and eventually bankrupt. That would be catastrophic for the global economy.
Does the rate vary by state?
@Melthornal The problem is not with what is taxed. The problem is with taxes period. It is not okay to rob people no matter who does it.
So what if the family's wealth grows and grows? These people produce goods and services which benefit everyone; everyone's share of the pie might be smaller as a percentage, but the pie as a whole will be bigger.
To add to the against argument, a business or estate consisting of mostly illiquid assets (Land, Buildings, Equipment) might be severely impacted depending on the timing of the taxation. Employees may lose their jobs depending on the ability of the estate to pay the tax while continuing a business.
There is also an argument that the exemption is too low and will impact more middle class estates. Right now 3/13/12 the law is set for the exemption to drop to $1m in 2013 with a 55% tax rate.
@mrhnm So basically you want a land owned by corporations, where the individual has absolutely no rights of any kind? You should try out the 1880-1920s. I heard that was a wonderful time in American history.
@essandee That's the option we have now but I don't think that it is a law of nature.
Estate Tax is just taxation of money that has already been taxed.
@essandee I don't like income taxes because then the gov has to be all over your business.
With high estate taxes, business and income taxes can be lowered or eliminated. That will keep more of the money supply where it belongs, circulating in the general public. Lower taxes on businesses will help them to succeed.
@johammbass Theft is the unlawful taking of somebody's property or possessions, without their permission, with the intent to deprive them of it. When you have a government of the people, tax is simply money that the society club together to spend in a way that benefits the society in a compromised way. Using propaganda etc to corrupt this process to get peoples' money isn't theft. That doesn't make it alright, it's just not what the word "theft" technically means, but the spirit of it is equal.
5m tax free, lucky guys over there!
35 percent is too high, but it is reasonable to have some tax on something after 10 Million dollars.
@Melthornal That's what we have that's not what I want.
@mrhnm How then is government paid for? Magic spells?
@mrhnm And the government charges you a fee for enforcing your rights. Without the government you do not have rights. You can own your house, but the guy who comes over to mow your lawn twice a week gets paid for giving you the service. The government does a whole lot more than mow your lawn.
I don't see how anyone could be against the estate tax
Greedy rich people and the poor people they tricked into thinking it would be applied to them.
@Melthornal It shouldn't.
What happens if you inherit $10 million from your spouse and then you remarry? After you die does your new spouse also get exempt?
In many circumstances, a person's estate is tied up in a business. Family farms for instance, can be asset rich, cash poor so they end up having to sell their business and liquidate the assets of the business and that is the most destructive aspect of the estate tax.
But the problem is the privately owned companies, that behave better than publicly traded companies.
If the head of FORD or STARBUCKS dies suddenly - if they were subject to the estate tax - the companies would have to SELL assets to pay the government for the estate tax. People would be outraged if the company had to lay off workers, or fire them.
Instead, we go after a private business owner, or farmer, who risked it all to create jobs and wealth.
Why not change the way it's collected?
It's a policy failure that there are no individual trillionaire's
@mrhnm Also, you pay a fee to your landlord when you rent an apartment, why wouldn't you pay a fee to the government when you live on its land? It is essentially just a form of rent. It is an asset owned by the government, ultimately.
@johammbass Haha, yep, when Goldman Sachs gets their hands in it, you can kiss it goodbye!!
by how you explained "unfair" I can assume you are for it, lol
Kind of curious the government spends so much of its attention on an estate tax that only affects a pretty small minority of the population
God I shouldn't have clicked on this video I feel so dirty.
Why taxes are theft period. And saying "your still going to get blipity blipity blu..." Is so asinine.
do you have to repeat everything multiple times when you're writing something down? it is really irritating. and for everyone who is going to tell me to not watch if i don't like it, please tell my professor to not substitute these videos in lieu of his own lectures and later quizzing us on it.