Estate tax con game - Ahwatukee Foothills News: Commentary

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

Estate tax con game

Print
Font Size:
Default font size
Larger font size

Posted: Wednesday, November 11, 2009 12:00 am

In a recent diatribe urging repeal of the federal estate tax, Republican state senator Pam Gorman (R-Anthem) tells a big, black lie. In 2011, she claims, the estate tax will rise to 55 percent. If true, that claim would mean a $55,000 tax on a $100,000 estate.

Here are the facts: for an estate less than $3.5 million, the current tax rate is ZERO! In 2011, according to Bush-era tax legislation, this minimum figure is scheduled to drop to $1 million. Also in 2011, a top of rate 55 percent would start at $3 million.

It is, however, virtually certain that Congress will repeal the decade-old tax legislation establishing the noted reversions. Exempted assets for federal estate tax will probably rise to $4 million, and the 55 percent top rate will apply only to the super wealthy, representing less than one per thousand estates.

An astonishing number of credulous Americans – concentrated among Fox News viewers – believe lies like Sen. Gorman’s. According to one poll, 49 percent believe that the majority of estates pay tax. In fact, only one in 600 pays estate tax.

The Reagan administration perpetrated an even more economically destructive lie – i.e., that tax cuts for the rich always increase federal tax revenue. Recent economic history demolishes this preposterous, but nonetheless relentlessly parroted myth. Of the past 11 former presidents, the two biggest debt creators got the biggest tax cuts for the rich. Reagan increased federal debt (as percentage of GDP) by 61 percent; Bush 43, by 26 percent.

In stark contrast, Clinton cut federal debt by 16 percent, after raising the top tax rate by 26 percent. During his two terms, employment increased 10 times more than under Bush 43; total GDP growth topped Bush’s by 50 percent (33 percent vs. 22 percent). I challenge “conservatives” to deny these incontrovertible facts.

Sen. Gorman’s arguments for abolishing the federal estate tax are as phony as other arguments for coddling the rich. Abolition of the estate tax would add $1 trillion to federal debt over the next decade. Her proposal is redundant evidence of Republican plutocracy: government of the naive masses, by and for the rich.

 

C.W. Griffin has lived in Ahwatukee Foothills since 1988. He is a retired consulting engineer.

More about

More about

More about

  • Discuss

Kerry’s Blunt Words for Israel Denounced by Lawmakers in Both Parties

A bipartisan chorus of lawmakers, upset with President Obama’s decision last week to allow the passage of a United Nations resolution condemni…

Published: December 31, 2016 - 10:14 am @ http://www.nytimes.com/2016/12/28/us/politics/john…

Gov. Brown Appoints New Public Utility Commissioners to Replace Florio and Sandoval

Martha Guzman Aceves and Clifford Rechtschaffen both come from the governor’s office with strong environmental protection backgrounds. Martha …

Published: December 31, 2016 - 10:14 am @ https://www.greentechmedia.com/articles/read/gov.-…

Obama preparing to penalize Russia for hacking

WASHINGTON — The Obama administration is preparing to penalize Russia over the hacking of Democratic officials during this year's presidential…

Published: December 31, 2016 - 10:16 am @ http://www.usatoday.com/story/news/politics/2016/1…

Presidential vote in congressional districts points to Democratic risks in 2018

Democrats started the 2016 election cycle with pessimism about their chances of taking back the House of Representatives. For a few moments th…

Published: December 31, 2016 - 10:13 am @ https://www.washingtonpost.com/news/post-politics/…

Mail truck tips on Mesa street

MESA, Ariz. - A mail truck ended up on its side in a crash Wednesday. Mesa police say a single-vehicle collision left the United States Postal…

Published: December 31, 2016 - 10:12 am @ http://www.12news.com/news/local/valley/mail-truck…

Reports of mall disturbances light up social media

A flurry of reports of mall melees and disturbances rippled across social media Monday on a day Americans swarmed shopping hubs for post-holid…

Published: December 31, 2016 - 9:51 am @ http://www.usatoday.com/story/news/nation/2016/12/…

Star New Brunswick cyclist Ellen Watters dies from crash injuries

Ellen Watters, a Canadian competitive cyclist critically injured in a collision with a car while on a training ride in Sussex, N.B., Dec. 23, …

Published: December 31, 2016 - 9:14 am @ http://www.cbc.ca/news/canada/new-brunswick/ellen-…

Graham, McCain want Russia sanctions after election hacking

Top Republican senators said Wednesday that the incoming Congress and President-elect Donald Trump should impose new and tougher sanctions on …

Published: December 31, 2016 - 9:13 am @ http://www.foxnews.com/politics/2016/12/28/graham-…

Immigration Is the Only Hope for States That Helped Trump

The decline of manufacturing does not explain the decline of Wisconsin. Photographer: Daniel Acker/BloombergFacebook Twitter Email Print Share…

Published: December 31, 2016 - 7:17 am @ https://www.bloomberg.com/view/articles/2016-12-28…

Creator of the Red Solo Cup dies at 84

FOX 32 NEWS - The creator of the Red Solo Cup died on Wednesday, December 21, 2016 at the age of 84. Robert Leo Hulseman lived in Northfield, …

Published: December 31, 2016 - 7:07 am @ http://www.fox4news.com/trending/225996868-story

Facebook

ahwatukee.com on Facebook

Twitter

ahwatukee.com on Twitter

RSS

Subscribe to ahwatukee.com via RSS

RSS Feeds

Spacer4px

Most Popular

Online poll

Loading…