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View Full Version : Ranchers, farmers brace for 'death tax' impact..



BEATINGU
11-16-2012, 10:44 AM
Feel bad for these people.

Lol @ China + Russia not even having a death tax







Rancher Kevin Kester works dawn to dusk, drives a 12-year-old pick-up truck and earns less than a typical bureaucrat in Washington D.C., yet the federal government considers him rich enough to pay the estate tax -- also known as the "death tax."

And with that tax set to soar at the beginning of 2013 without some kind of intervention from Congress, farmers and ranchers like Kester are waiting anxiously.

"There is no way financially my kids can pay what the IRS is going to demand from them nine months after death and keep this ranch intact for their generation and future generations," said Kester, of the Bear Valley Ranch in Central California.

Two decades ago, Kester paid the IRS $2 million when he inherited a 22,000-acre cattle ranch from his grandfather. Come January, the tax burden on his children will be more than $13 million.

For supporters of a high estate tax, which is imposed on somebody's estate after death, Kester is the kind of person they rarely mention. He doesn't own a mansion. He's not the CEO of a multi-national. But because of his line of work, he owns a lot of property that would be subject to a lot of tax.

"Our number one goal is to repeal the estate tax, to get rid of it, not have it for every generation, when I die and my kids die and so on," he told Fox News. "For everyone to have to re-purchase the ranch or farm over and over for each generation, that's inherently unjust. So what we're doing is asking our politicians to understand that and repeal the estate tax."

That, however, is unlikely. Currently, the federal government taxes estates worth $5 million dollars and up at 35 percent. When the Bush-era tax rates expire in January, rates increase to 55 percent on estates of $1 million or more. While some Republicans want to eliminate the death tax entirely, President Obama has proposed a 45 percent rate on estates of $3.5 million and up.

"The idea behind the estate tax is to prevent the very wealthy among us from accumulating vast fortunes that they can pass along to the next generation," said Patrick Lester, director of Federal Fiscal Policy with the progressive think tank -- OMB Watch. "The poster child for the estate tax is Paris Hilton -- the celebrity and hotel heiress. That's who this is targeted at, not ordinary Americans."

But according to the American Farm Bureau, up to 97 percent of American farms and ranches will be subject to an estate tax where the exemption is set at $1 million. At that rate, the federal government will pocket $40 billion in 2013 and up to $86 million in 2021. That contrasts with just $12 billion this year.

Many Democrats argue the tax promotes equality among classes, especially in capital gains -- or stocks passed from one generation to another. Since stocks are only taxed when they are sold, the government can't profit from long-term investments without the estate tax.

"Very large portions of very wealthy estates are tied up in stocks and they have never been taxed," said Lester. "The estate tax is one of the ways we make sure the wealthy pay a little bit more as an overall share of their wealth and income compared to low-income individuals."

Many Republicans argue the opposite. Because the estate tax falls on assets, they say it hampers investment by reducing incentives to save and invest. A pending estate tax could become a disincentive to invest in an otherwise viable business, forcing older people to liquidate or shift resources out of an ongoing business and into a trust or tax-free investment.

"We're not millionaires in the terms of making a million dollars a year," said Kester who lives in a modest home and whose family -- not outsiders or a corporation -- runs his ranch. "I have a half-a-million dollars in soil."

Kester can't spend it, without selling land. But by selling the land, each year the ranch would become less viable.

The estate tax dates back to 1916 when then-President Woodrow Wilson imposed the tax of 1 to 10 percent on the wealthy because World War I reduced federal government revenues. Under Franklin Delano Roosevelt, the tax rose to 77 percent, as Congress tried to prevent wealth from becoming concentrated among a few powerful and super-rich families.

Ironically, many nations historically more concerned with class and wealth -- namely Russia and China -- have since abandoned their estate taxes.

Read more: http://www.foxnews.com/politics/2012/11/16/ranchers-farmers-brace-for-death-tax-impact/#ixzz2CPe6IdY3



Read more: http://www.foxnews.com/politics/2012/11/16/ranchers-farmers-brace-for-death-tax-impact/#ixzz2CPe17rcX

JoshSP1985
11-16-2012, 10:53 AM
Estate tax needs to go. There is a huge logical disconnect in the minds of people that support it.

It also would provide an economic boost if it was removed.

flairon
11-16-2012, 10:54 AM
Doesn't establishing a trust side step this?

RelentlessChaos
11-16-2012, 10:56 AM
yaaa this will be my old mans property when hes ready to pass it along in 10 years or so. If you think there should be an estate tax your dumb

Rexy
11-16-2012, 10:59 AM
"The poster child for the estate tax is Paris Hilton -- the celebrity and hotel heiress. That's who this is targeted at, not ordinary Americans."

I see generalizing is okay when it works for Liberals.

only a few people take advantage of Welfare so we can't regulate welfare. That's not right
Everyone inheriting an estate is Paris Phucking Hilton

DJKhaled
11-16-2012, 11:02 AM
Why do liberals hate freedom so much?

VAPlowhorse
11-16-2012, 11:04 AM
Shouldn't be an estate tax, but he really should have been gifting it off annually to the heir(s) or putting it into programs that protect from taxes. The issue has been well known in the farming community for some time and other than incidences of unexpected death, people often just do not act in their own financial interest.

RelentlessChaos
11-16-2012, 11:04 AM
"The poster child for the estate tax is Paris Hilton -- the celebrity and hotel heiress. That's who this is targeted at, not ordinary Americans."

I see generalizing is okay when it works for Liberals.

only a few people take advantage of Welfare so we can't regulate welfare. That's not right
Everyone inheriting an estate is Paris Phucking Hilton

with the numbers given in OP a lot of small business fits in there.

Rexy
11-16-2012, 11:06 AM
with the numbers given in OP a lot of small business fits in there.

of course, as well as farms and ranches.

Living on a farm isn't going to make you wealthy, but that land is worth a ton.

DJKhaled
11-16-2012, 11:10 AM
of course, as well as farms and ranches.

Living on a farm isn't going to make you wealthy, but that land is worth a ton.

But but but rich people and Paris Hilton!!!!!

RelentlessChaos
11-16-2012, 11:17 AM
of course, as well as farms and ranches.

Living on a farm isn't going to make you wealthy, but that land is worth a ton.

yup, your right. So say i dont make much but i own a lot of land......im screwed.


But but but rich people and Paris Hilton!!!!!

lol....isnt it funny tho how they cry this, but look at the numbers. Is the hilton life worth a few million? WAYYYY more. Now my old mans farm? yes.....and he would be getting this punishment. As i said, they cry about paris hilton, but really they know what they want and what they mean.

toboku
11-16-2012, 11:35 AM
look, not to defend paris hilton or anything but her family earned that money why should the govt get millions when her father dies? it's ****in bull****

DJKhaled
11-16-2012, 11:39 AM
look, not to defend paris hilton or anything but her family earned that money why should the govt get millions when her father dies? it's ****in bull****

Cuz I want my free stuff and Obamaphone. I'm entitled.

RelentlessChaos
11-16-2012, 12:03 PM
look, not to defend paris hilton or anything but her family earned that money why should the govt get millions when her father dies? it's ****in bull****

its ok, we all agree. And if it rustles anyones jimmies, its ok, they dont know better

JoshSP1985
11-16-2012, 12:07 PM
look, not to defend paris hilton or anything but her family earned that money why should the govt get millions when her father dies? it's ****in bull****

They shouldn't

Plus Paris is stimulating the economy spending that money

REMOVING the estate/death taxes and leaving that money in the private sector BOOSTS the economy. I recall seeing a few studies that said removing those taxes would be an economic boost.

woofermazing
11-16-2012, 12:16 PM
This had never even crossed my mind, good read.

CuriousGM
11-16-2012, 12:56 PM
I've always argued the estate tax should be abolished and this is a good reason why.

But lol @ Fox News using Russia and China as a positive example on anything.

ScubaStevo
11-16-2012, 01:00 PM
Did that lib seriosuly bring up Paris Hilton?