4 Senate "Democrats" prove they absolutely hate the poor

[Sam Spade]

I think there should definitely be a higher exemption amount, and it should be indexed to inflation.

As always with the federal tax code, there is an element of regional discrimination here.  With home values in this part of the country, an estate of $1 million + is not at all unusual here, even for a person who lived a relatively modest life.  In this section of the country, a net worth of $1-2 million late in life is that of an upper middle class person, not a wealthy one.

This tax should be hitting the truly wealthy, not the upper middle class.  I'd put an exemption amount of $5-10 million on it.  That would easily rope in the 18 families that jfern is talking about.

This is quite correct, actually.

Interestingly, I could support an estate tax of some sort, but at a higher exemption than now ($10 million, probably), indexed to inflation, and tightening up the loopholes.  That would get the ultra-rich, without hitting most of the small businesses and eliminating regional bias (which would screw people the strongest along the coasts).

You see, at present there are plenty of loopholes around, so most family businesses who the present estate tax hits, including mine, who have any financial sense, use these loopholes to get around the estate tax.  So do the ultra-rich.  Of course, some people like paying taxes.  Those people are stupid, frankly.

[Sam Spade]

No, from the 2000 data, there were only 123 farms and 135 small businesses over the $2 million threshold. Couples currently get $4 million tax free.
http://www.cbpp.org/5-31-06tax2.htm

So, my family's business would potentially be one of the 135 small businesses that would be effected by the estate tax.  I find that hard to believe.

Oh wait... 

Except you're not taking into account that most small family businesses fear the estate tax so much, they use the many and various loopholes provided to them in the tax code to avoid paying hardly any estate tax whatsoever.  Since you've spent your time in college or graduate school or posting on the Internet, or whatever the hell else you do and not out in the real world, I don't blame you for not interacting with these businesses so you know what their concerns.

I've said that I'm not opposed to raising the exemption and tightening the loopholes, so that you might be able to get some money (which you're not presently doing) out of the truly rich families to fund more government programs.  But now I'm done being nice. 

My family is one of those "small businesses" that has assets +$4 million dollars and will pay no inheritance tax under current estate tax laws, regardless of whether it's $4 million or $675,000.

Wouldn't you like to be able to get your filthy leftist, stink-ridden hands on my family's money, you socialist pig?  I'm sure that would fit your class-warfare ideals to a tee, jackass.

Have a nice day. 

[Sam Spade]

My family is one of those "small businesses" that has assets +$4 million dollars and will pay no income tax under current estate tax laws, regardless of whether it's $4 million or $675,000.

Your family pays no income taxes?  Or do you mean that you will pay no inheritance taxes?  Those are different things.  If either or both are the case, would you mind sharing their methods?  Sounds a bit too good to be true..  my progenitors seem to pay lots.

Inheritance taxes.  I mistyped in the above post.

[Sam Spade]

My family is one of those "small businesses" that has assets +$4 million dollars and will pay no income tax under current estate tax laws, regardless of whether it's $4 million or $675,000.

Your family pays no income taxes?  Or do you mean that you will pay no inheritance taxes?  Those are different things.  If either or both are the case, would you mind sharing their methods?  Sounds a bit too good to be true..  my progenitors seem to pay lots.

Inheritance taxes.  I mistyped in the above post.

Still, very interesting!  How will they accomplish this feat?

Utilization of trusts and other means and loopholes within the law.  I'm not really at liberty to say exactly what means, but I can assure you that they're entirely legal.

They do pay a decent amount of income taxes, capital gains taxes, property taxes, etc. at present, but there is considerable cash flow and a good amount of cash-on-hand (how much I'm not willing to say). 

When most of your interest is in real estate, most of your concern is in protecting it for the future, whether it be from outrageous property tax evaluations, (a big problem in Texas) retirement, or after your death, or protecting it from lawsuits and protecting your personal liability.