Remember that the fair tax (which will sadly never have a chance) probably wouldn't take out this tax. I can't find anything in the article about whether the stepped-up basis we have now stays. Earlier I had heard we would move in 2011 to a carry-over basis, which would create an accounting nightmare and kill people with capital gains income taxes. They were fighting about that when I was in the school in the 1970's and the exemption was a mere $250,000.00.

won't inherit anything more than some gold teefers and a hoopdee car. their reasoning is since they won't then nobody will. I deem this appropriate logic from the parasite crowd.

SV - Surely you've heard Stevie Ray Vaughans version of the same song??

Anyway, I wonder who the hell is going to care about anything to do with our currency in a few years anyway. It won't be worth crap. The average life span for a currency (in this case the dollar) is what 75 years? We're around 200 years now. It's time. Obama and his idiots will see to that.

and Capt. Stillman,Dolan,Pvt whoever - effoff sicko.

As always, there's lots of misinformation on this board, no doubt caused by folks listenting to talk radio.

Esorcire -- There would not be anything close to a 100% tax on 401k plans. In the first place, if you inherit a 401k from your deceased parent or spouse, there's no penalty. There would be income tax liability, but that's because income taxes had never been paid on the contributions in the first place.

Then the spouse would inherit the 401k free from estate tax. If it went to the kids, the first $3.5 million (net of the income taxes paid) would be estate-tax free. Only anything more than that would be subject to the estate tax of 45%.

So, the bottom line is: If your dad has $5 milion socked away in his 401k and you inherit the whole thing, you'd need to pay $1.75 million in income taxes, but not a dime in estate taxes.

If he had $10 million in his 401k, you'd need to pay $3.5 million in income taxes and $1.35 million in estate taxes.

Now, for those of you who live in reality, how many folks have more than $1 million in their 401k or IRA? Virtually none.

David Granger -- The estate tax was implemented in 1916. Every Kennedy, Rockefeller and other rich person living has been living under the estate tax.

And for the rest of you that want to elimnate teh estate tax on the wealthy, remember that we'd need to increase taxes on the middle class to make up the difference.

Ya' think that's fair?

the tobacco industry KILLED 30 million for profits,talk about greed. wal mart just paid 40 million because it cheated its employees.ford refused to fix the pinto because it was cheaper to pay the law suits than fix it. corporations dumped toxic waste in river and buried it because it was CHEAPER.the vast majority of premiums goes to profits an commisions.if you dont know whaqt your talking about stfu.
private industry had 16 years to fix the health care and didn't. the republicans had 16 years and didn't. why because the insurance companies PAID them NOT to.the republicans had 6 years to fix illegal problems and in fact killed 22 bills by the democrats to secure the border.80% of the deficit happened uunder REPUBLICAN presiodents namely REAGAN and bush II.reagan raised taxes SEVEN times bush raised taxes on middle class to pay for his tax cuts for rich.(he eliminated every deduction for the middle class, the other way to raise taxes.)he also tried to eliminate the interest on a house as a deductions.
we are in this financial mess because of the RIGHT.TAKE RESPONSIOBILITY for your SCREW UPS.party of personal responsibility my foot.your the party of whiners.because that is all you do is whine.

I'm going to have a hell of a party and then tell my kids I did it for them. I'll spend every penny just so they won't have to pay taxes om the money I already payed taxes on. Selfish? No. Just want to piss off the government any way I can. Plus I want to deny Truthseeker any benefit of my hard work.

Not only do we pay taxes on everything we earn, but we also pay taxes on everything we spend, everything we invest, and all property we own!

Screw all politicians - they take our money every way they can. Bunch of punks. STOP TAKING OUR MONEY!

(And Neal, by the way, today is my birthday - the big 37. Wish me happy birthday!) :)

Wonder if the Democrats will lead by example on this? The Kennedys, Jay Rockefeller, Herb Kohl...they all inherited vast fortunes before the "inheritance tax" came along, and I wonder if they'd be willing to lead the way by going back and voluntarily paying what they would have to pay today, under the law that they just voted for?
(Rhetorical question, of course...none of those hypocrites would ever consider anything like that.)

It's not surprising certain people here think that because the tax will not affect them it is ok. They could not possibly think they will someday be included in the affected upper class because they think wealth in unattainable. Am I affected by this tax now? No, far from it. However, I was taught that in American you can get there through hard work and that is what I intend to do. And that is why people that are not affected should still oppose this, just as smart people did even when Bush was in office.

Vlad says only 3% will pay ... the tax won't effect most of us here. So you're saying that because most people are not impacted, that the principle (or lack of) should be ignored?

Vlad - your semantic B.S. about dead people don't pay taxed, their heirs pay the tax, may be technically true - but it isn't quite sophisticated enough to to fool me. Good try.

someguy - You cay the dead have no rights, so tax the bejeezers out of 'em, huh? Well, Vlad tells me dead people don't pay taxes ... their heirs pay the tax.

The two of you should hook up and get into a big 'ole pissing match over semantics and technicalities to find the best way for government to B.S. people out of their money.

From the section "10 Conditions For Transition To Communism", #3 states:
"Abolition of all right of inheritance."
An estate tax is just the first step. If these Marxists have their way, they will seize 100% of your family's wealth no matter the income level. And of course this is in no way enumerated in the Constitution. This wealth has already been taxed and should not be taxed again. This along with the marriage penalty should be eliminated. Hell, all income taxes should be eliminated.

My 87 year old grandmother happens to be loaded. So, to avoid death tax, she gives family members goodies using whatever loophole she and her accountants can come up with. She passes out $10,000 checks at Christmas, lets the family go shopping with her dredit card, etc. One year she "gave" me a Lincoln. Title stayed in her name ... for tax reasons. The Producer class will hide more wealth in trusts and overseas accounts.

The Fair Tax would solve all of this. But until then, I'm looking for more ways to "Go Galt" without actually having to move to the western mountains.

Also - Isn't Jon Kyl's (RINO-Ariz.) effort to reduce the death tax rate to 35%, with an exemption of $5 million simply a sugar-coated, socialist-lite version of what the looters are doing?

Oh yeah ... one more thing ... I'm giving two fingers to Steny Hoyer and Harry Reid!

I am a problem solver...

The so-called liberals are pro gay marriage, and it would be nice to take them at their word, and extend to the the right of gay marriage, but also remove other restrictions on marriage, such as plural marriages, and marriage within family.

Here is how this pays off:
A couple gets rich and decides to marry their children, but only has joint accounts in the name of the parents. If the couple should perish simultaneously, the community property of the marriage goes to the survivors (as it does now, notwithstanding a will) tax free. If either one dies before the other, the joint accounts and ownership passes to the surviving parent tax free.

There is nothing that says that one must consumate a marriage, so marrying your children (and their spouses) would be a sinless (whatever you define that to be) act.

A modest proposal indeed, but then again, so was the original one.

Good estate planning can reduce the amount of an estate seized by the federal government to zero. However, it won't help you with the estate taxes assesed by most states. Their exemptions are too low.

Yes, you work all your life, earn a lot of money, and then when you die... You get to pass it on to someone in exchange for no work? Is that how capitalism is supposed to work? Sounds broken to me.

This insane notion that you continue to have rights after you die MUST end. When you die, all money you have which is not debt should not be taxed, should not be passed on, but should be seized and destroyed.

No, you don't get to give your money to someone else tax-free just because you had the great idea of being dead at the time. Remove the notion of taxing gifts, sure, no problem with that. But don't make exceptions for the dead. The dead should have absolutely no rights under the law. That means you, Disney.

the looter class coupled with the political class have this country on a death spiral. I am so sick of this government...the clock keeps counting down on our descent into third world status.

But the decedent's estate certainly does pay taxes ... I've served as "executor" four times ... and got to wrassle with Federal, State, County and Local estate taxes. Lots of "fun" (if paperwork can be considered "fun)

Please note also that anything in the decedent's estate is "net after tax". The wherewithal the decedent used to purchase that house was "after tax" money. Same with the car, the clothes, the TV set, the refrigerator, the couch, etc.

Hope you didn't have breakfast, because this is enough to make you want to barf.

"In America, it's not a sin to be rich nor is it a crime to die rich," said Rep. Jared Polis, D-Colo. "This bill gives our nation's wealthiest families the ability to know exactly what their obligation to the nation that fostered their wealth will be, and it is fair and it is just."

From another article, located here: http://www.breitbart.com/article.php?id=D9CC1OQG3&show_article=1

Let me preface this by saying I am completely opposed to this tax.


BUT

Come on Neal, this desire for sensationalizing is unbecoming. The Dems are NOT the only ones who call this an "estate tax". Every tax practitioner in the country refers to it as an estate tax.

The term "death tax" is the expression that is used by the minority (basically you).

Sorry Neal, no evil hidden Dem agenda here.........

If conservatives dont like it so much then why have they never taken a strong initiative to get rid of it? I seem to remember 8 years of conservative power where this could have been done. Lets hear the excuses!!!