Thread: USA Today: Donald Trump: Democrats 'Medicare for All' plan will demolish promises to seniors

Originally Posted by JasperL

Yes, it's an allowance. So what?

And why is it "greedy" for me to simply believe inheritances ought to be taxed like the money you make working hard at your job? It's income by any definition in the code or the courts, and only not taxed because of massive loopholes in the tax code. Are you for big tax loopholes, but only for wealthy trust fund babies like our President? If you're not, then what's greedy about closing that one? Seems to me the 'greedy' ones are those who believe they ought to be able to inherit $billions from daddy and pay no tax on the transfer or when they sell the assets DADDY earned, while hard working people like you pay income and payroll taxes on every dime you make.

I oppose inheritance taxes.

Originally Posted by EnigmaO01

Well that's a mistake. We've shown we are not reliable when a country gets invaded. Czechoslovakia, Germany (East), Crimea, Georgia, etc. etc. And with the idiot in chief we have now that's even less likely.

Yeah I know, Do Nothing Obama was the worst at turning his head. Putin told him to cancel the missile defence in NATO and Obamafail jumped up and canceled it. He never provided arms to Ukraine. He called ISIS the JV Team that he could not take out, can you believe it he could not wip a JV team. Now North Korea was a big winner for Obamafail or was his actions of Do Nothing a complete failure. He relied on Russia to confirm Syria got rid of all their WMD, can you believe that one, he got Russia to do it and he believed them. Obamafail puts down his RED LINE and you know what, Syria walked all over his red line. Yep Trump had to fix all of Obamafails Do Nothing BS, lead from behind and do whatever Putin told him to do. Almost forgot Obamafail pulled out of Iraq and not soon after he moves back in. And Obamafail really got NATO to pay their fair share, wait a minute, he did nothing to get NATO to pay up. This guy was a blooming idiot and that's just the beginning of Obamafail. Benghazi remember that one, or when Obamafail flew in the middle of night over a billion dollars in CASH to Iran. And he cuts a deal with Iran with NO INSPECTIONS ANYTIME ANYWHERE. IDIOT. You mentioned Crimea, what did Obamafail do again to help Crimea? That's right. NOTHING. When Putin said jump Obamafail said how high.

Originally Posted by JasperL

OK, so you oppose a system that gives a huge tax loophole to about 99.5% of families, simplifies estates, bookkeeping, tax administration?

And, again, fine, you oppose inheritance taxes. OK, treat inheritances like all other income! I'm good with that! But I don't know why you'd oppose a system that in its current form is a great thing for everyone not worth more than $15-20 million.

I'm sure you know in a family business, the children most likely work in that business to grow the business. When the parents die they gift the business to their children who helped them in the business for years. So now the business they help grow is taxed to death. And yes I oppose inheritance taxes. The money was probable was taxed at the corporate level and then again when funds were distributed or when the stock was sold at a gain, and now for a third time when it's gifted. Enough already

Originally Posted by Born Free

I'm sure you know in a family business, the children most likely work in that business to grow the business. When the parents die they gift the business to their children who helped them in the business for years. So now the business they help grow is taxed to death. And yes I oppose inheritance taxes. The money was probable was taxed at the corporate level and then again when funds were distributed or when the stock was sold at a gain, and now for a third time when it's gifted. Enough already

Nobody in that situation "gifts the business;" that would be bat**** absurd.

They put it in a family trust.

Originally Posted by DifferentDrummr

Nobody in that situation "gifts the business;" that would be bat**** absurd.

They put it in a family trust.

Correct me if I'm wrong, they still have a cost basis, if the owner at age 75 has a business worth say 20 million and now he wants to set up a family trust. The kids do not automatically get an equal value, nor can it be passed on ignoring the gift tax.

Originally Posted by Born Free

Correct me if I'm wrong, they still have a cost basis, if the owner at age 75 has a business worth say 20 million and now he wants to set up a family trust. The kids do not automatically get an equal value, nor can it be passed on ignoring the gift tax.

The downside of lifetime gifts versus at death is with gifts the kids get a carryover basis, which if dad started it would be roughly $0 in a lot of cases. If he dies, the kids step up the 'cost' basis to FMV on the date of death. So there's a trade-off. If you get it out of the estate early, you avoid estate/gift taxes on the appreciation between the gift and death, but miss out on the step up at death. If capital gains taxes are at 20%, and might not be paid for years or decades if the kids keep the business, and estate taxes at 40%, then it's not that hard a choice in most cases.

And you're right, lifetime gifts over the annual exclusion of $15k per person, per recipient, go against the 'unified' estate and gift tax exclusion of roughly $5.5m/person under current law.