Backdoor Taxes to hit the Middle Class

[Wallet]

Quote from vhehn:

most middle class working investors dont pay cap gains or dividend tax. their investing is usually done through a retirement plan where these taxes are exempt.
the death tax should be reinstated with a 3-5 million threshold. without it too many estates escape all tax. example: if someone buys a piece of property for 1000 and holds it until he dies there is no tax due even if the property is worth a million dollars. the person who inherits the property is able, because of a stepped up basis through inheritence, sell that property and pay 0 tax of any kind. a death tax fills that loophole.

Bull crap!

It's called inflation, same goes as the money that was used to purchase that home years ago went farther. I used to be able to buy a candy bar for 10 cents, just because I pay 2.50 for it now doesn't mean it's worth more. Plus the local and state governments have been taxing that piece of dirt and any improvements since it's purchase.

When I buy something and pay the tax on it, the tax bill is PAID.

What you propose opens the door on any official levying a tax on any increase of property. If that's my business then I'll pay the income tax, but taxing an individuals assets when they die when transferring them to their family is WRONG!!!!

 

[Free Thinker]

Quote from Wallet:

Bull crap!

What you propose opens the door on any official levying a tax on any increase of property. If that's my business then I'll pay the income tax, but taxing an individuals assets when they die when transferring them to their family is WRONG!!!!

how is it fair to have assets pass tax free through an estate but the same assets if sold 1 day before death are taxed? basic fairness is that all assets be taxed equally when sold.

 

[Wallet]

Quote from vhehn:

how is it fair to have assets pass tax free through an estate but the same assets if sold 1 day before death are taxed? basic fairness is that all assets be taxed equally when sold.

In my state, when the ownership of a vehicle changes, the new owner has to pay what is called , tags, tax and title. Meaning tags are a usage tax for each vehicle to drive the roads for the current year. Tax is a one time excise tax figured on a prorated basis of the vehicles msrp. Title is the cost involved of paper work, physically changing the names.

That holds true for every transaction except transferring inside your own family, where the only fee is title costs..... no taxes!

The tax of transferring death estate assets between family members is WRONG!!!!!

There should be NO tax to transfer any asset between family at any time.

The monies used to pay for those assets were taxed when earned, and sales tax was paid on the asset itself at purchase. If I want to give it to someone why should they pay a second time??????

 

[Lucrum]

Quote from Wallet:

...The monies used to pay for those assets were taxed when earned, and sales tax was paid on the asset itself at purchase. If I want to give it to someone why should they pay a second time??????

You shouldn't, the whole idea of a "death tax" is absurd.