Quote:
Originally Posted by Galt
I'm completely in favor of eliminating the estate tax.
Income is taxed. The income that you've already paid taxes for is used to purchase property, which is also taxed. When you die, the property is left to your heir who not only pays an estate tax, but then must also pay property tax for as long as he or she owns the property. How many times should the government be allowed to tax the same piece of income?
This is also a huge slap in the face of property rights. If a piece of property was legitimately purchased with legitimately earned money, why should the government be entitled to portion of its value?
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Our federal personal tax system has existed since 1913, and inheritance taxes were introduced in 1916. The federal government has been managed by a Republican administration for 4-1/2 years. In that time, a combination of Republican sponsered tax cuts have relieved the wealthiest Americans of an appreciable percentage of the taxes that they formerly paid. The tax system has been changed to tax earned income at higher rates than capital gains, and capital gains taxes on real estate profits on the sale of your personal residennce have been eliminated, except for some taxes on gains that exceed $250,000. This tax relief already has favored the wealthiest Americans who derive their income from non-wage sources.
The federal government has spending obligations that now exceed revenue by $500 billion annually, and there is no plan to cut spending or raise revnue, even though Republicans raised spending as they cut taxes. The present administration came into office with a federal budget that enjoyed a small surplus. The government borrows the $500 billion annual shortfall, and the federal debt in the last four years has risen from $5.5 trillion to $7.5 trillion, an increase of $2 trillion that you and your children are responsible to pay with interest. The government has eliminated the 30 year bond, and now finances the debt with instruments of a maximium ten years duration, with much of the debt exposed to the risk of rising interest rates, aggravated by the increased federal debt, and a runaway trade deficit that will climb to $700 billion annually this year. Borrowing costs for the government rise as both the federal and trade deficits must be financed by foreign investors who seek higher interest rates and low risk on their bond investments.
The president says that the U.S. is at war, and increased military, domestic security, and intelligence costs help make it inconcievable that federal spending will be cut.
Only the welathiest American families are subject to inheritance taxes and they have been paying them since 1916. Why are you so concerned about relieving these folks of these taxes? If they do not pay inheritance taxes at the current rate, you and the rest of us will owe a greater collective federal debt, at higher interest rates. Are you aware of the ways that the wealthy already minimize their inheritance tax exposure? There is a tax planning industry that wealthy people consult to help minimize the tax, They set up trust funds, bequeath charitable exempt contributions, scholarships, new hospital wings, museums, etc., named after them. My personal experience in owning and managing a family business was purchasing a "second to die" insurance policy on the life of the surviving parent who owned the real estate that our business operated from. The cost of the policy was lower than if it had to payout upon the death of one person past 60 years of age. Since the inheritance tax on the real estate value would only be due after the death of the second parent, since spouses are exempt from paying the tax on each other's estate value. Hence, the description, "second to die policy". The accountant for our business instructed my wife and I, as the business owners, to have our business issue a salary bonus to us that would pay the monthly policy premiums, an expense that was deductible to the business, including an addtion in the bonus amount to cover our increased income taxes on the salary addition from the bonus.
My point in sharing this is that your concern is misplaced. Your government has been taken over by tax cutters who seem more concerned with upsetting the past, balanced tax structure to further enrich their wealthy campaign contributors. This weakens the purchasing power of our currency and guarantees a rising debt obligation for your chidren.
Many of the wealthy do not want the tax repealed. Do your senators and congresspersons represent you, or only their wealthiest constituents. Examine their vote on the recent bankruptcy bill. Chances are, that if your representative is in favor of eliminating inheritance taxes, but has done nothing to reduce the rising budget and trade deficits, he also voted for the "bankruptcy reform" bill that was recently passed with no protection for the 50 percent of bankruptcy filers who experience a sudden illness that destroys their ability to earn income or to pay sudden medical expenses. Chances are, you also live in a state with an above average bankruptcy per household ratio. Stop listening to the rhetoric of representatives who do not vote for what is best for your family. If you are wealthy enough now to be concerned, I've given you tips on avoiding the tax. If you are not, why are you concerned? The accumulating federal debt and deteriorating purchasing power of your dollars is guaranteed, even with the help of inheritance tax revenue. You becoming wealthy enough to personally benefit from repeal is a dream or an ambition. Do not let politicians maniplulate you into voting against your own best interests, anymore.
Quote:
http://faireconomy.org/press/2005/OregonAdpr.html
Media Advisory from United for a Fair Economy
For immediate release
Contact Michael Davoli, United for a Fair Economy, 503-381-8158
June 27, 2005
Prominent Oregonians Sign Newspaper Ads to Preserve the Federal Estate Tax
Ads Highlight Need to Keep "Fairest Tax of All"
SALEM, Ore.—Local supporters of the federal estate tax will redouble their efforts this week and next, as the U.S. Senate prepares to vote on full repeal of the estate tax before the July 4th recess.
WHAT:
50 influential Oregonians have signed their names to newspaper ads to appear in four papers across the state, urging Senator Ron Wyden to preserve the estate tax. They are available to do interviews on the topic. Supporters of the estate tax will also deliver a letter to Senator Wyden asking for a meeting, along with a Call to Preserve the Estate Tax signed by 100 prominent Oregonians. The ad is available at http://www.faireconomy.org/estatetax/oregon print ads.pdf.
WHEN:
The ads will run Monday, June 27 through Friday, July 1. Selected signers will be available for media interviews the week of June 27.
WHERE:
The Oregonian (June 27)
The Medford Mail Tribune (6/28)
The Bend Bulletin (6/30)
The Jewish Review (7/1)
WHO:
Prominent Oregonians (please see list of spokespeople below)
WHY:
The news from Washington, D.C., is that the U. S. Senate is likely to vote on the estate tax in the next several weeks. Senator Wyden is still undecided on how he will vote.
Will the GOP majority hold out for full repeal? Or will a bi-partisan reform measure emerge? Whatever the outcome, it will have an impact on Oregonians as well as Americans overall. Estate tax repeal would mean adding another $1 trillion to the national debt over the next 20 years. Estate tax reform, if it is reasonable, would mean affirming a progressive tax that would help solve our nation’s fiscal woes.
Paul Volcker, Alan Greenspan’s predecessor at the Federal Reserve, and Bill Gates, Sr., father of Microsoft’s founder, have called the estate tax the fairest tax of all, because it affects only multimillionaires well able to pay the tax--1% of the American population. This important debate is entering its final stages, and Senator Wyden’s undecided vote means Oregon has an important role to play.
United for a Fair Economy (UFE) is a national, nonpartisan, non-profit organization raising awareness that concentrated wealth and power undermine the economy, corrupt democracy, deepen the racial divide, and tear communities apart. For more information, see www.faireconomy.org.
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