True Federalist (진정한 연방 주의자)
Ernest
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Atlas Legend
Posts: 42,144
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« on: June 09, 2006, 12:17:58 AM » |
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Actually, the repeal of the estate tax will hurt the middle class.
Suppose the parents bought a hoiuse for $10,000 that is now worth $210,000 and they have total assets that are low enough to not have to pay the estate tax. Under current law, when they die, the basis price of the house for the capital gains tax is increased to $210,000. With the estate tax repeal, it remains $10,000 so when it is sold, the heirs will get socked with a capital gains tax on the sale of $30,000 ($40,000 if the reduction in the capital gains tax is not made permanent).
I would much rather see the capital gains tax eliminated than the estate tax. It creates a lot of useless accounting rigamarole and record keeping for the sole purpose of satisfying the tax, and that's without even considering the other economic benefits of its elimination and/or reduction.
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