ConnorEl
Well-known member
I’m fine with a reasonable progressive inheritance tax.
But 90%?
Nah.
But 90%?
Nah.
Okay. Let’s say you inherit $10MM of silver and there is no step up in basis and no unified credit or it’s been otherwise exhausted.
The estate owes 40% tax on the silver so you need to sell it. You owe 39.6% on the sale to the government plus 10% to the state. So after income taxes you you have $5,040,000 left. $4MM goes to the estate tax leaving you with $1.04 MM which is a combined 89.6% tax rate.
If you have 10 of something before a transaction and 9 of it goes to the government and one passes through then that's effectively a 90% tax. That's not accountants propaganda that's just math.it's not 90%
accountant propaganda
If you have 10 of something before a transaction and 9 of it goes to the government and one passes through then that's effectively a 90% tax. That's not accountants propaganda that's just math.
the estate doesn't have 1 at the end of the transaction.
stop pretending it's all the same thing
But the government does have 9.
You’re dead. The game is over. You won.
In how many inheritance situations is the government actually taking 90% like in Cav’s scenario? 1%? 0.01%?
Effectively it is the same thing. People don't care if estate value when it's passed down is taxed at the estate level or at the inheritor level they just care about the amount of taxes paid relative to the amount of value that is passed down. You're about the only person I've ever seen that think that this distinction matters.the estate doesn't have 1 at the end of the transaction.
stop pretending it's all the same thing
I'm definitely an idiot when it comes to estate tax law, but why would the estate have a tax rate applied to the silver assets as if it was a fully taxable income, and then an additional estate tax applied before distribution to the inheritors?
isn't a lot of the argument with set up basis that either the estate needs to pay a tax on the total amount at death, or there is no estate tax, but there is no step up basis with the transition of assets? My understanding is very few people argue you need a 40% estate tax plus no step up basis for capital gains.
the estate doesn't have 1 at the end of the transaction.
stop pretending it's all the same thing