Archive for the ‘Estate Taxes’ Category

The perils of long-term financial planning…

October 4, 2019

Frugal savers bulls-eyed as Congress move to end “stretch” IRAs.

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According to a WSJ recap…

Conventional financial planning wisdom has been to put as much money as possible into IRAs and 401Ks … starting early, maxing plan contributions, benefiting from company matches, growing accounts tax-free … and, if you don’t end up spending all of the dough in retirement, pass anything left in the pot to heirs.

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While that basic logic still holds, Congress is moving to throw a monkey wrench into the works by substantially increasing the tax burden on heirs.

Here’s what’s going on…

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Flashback: Buffett says”increase taxes on estates (since mine is sheltered)”

October 4, 2016

OK, he really didn’t say the last part …  I added that nugget.

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The NYT dust-up on Trump’s tax loss carryforward reminded me that Hillary is proposing to jack-up the estate taxes on fat cats.

Of course, her favorite billionaire — Warren “I’m with her” Buffet — won’t be subject to the higher estate tax rates.

Why not?

Let’s flashback to my long ago proposed “Buffett Rule” … designed to get fat cats like him to stop whining about their too low taxes and pay their fair share.

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According to CNBC, Warren Buffett is one of several dozen wealthy people who have signed a statement calling for a “strong tax on large estates.”

Buffett & friends say:

  1. “Dynastic wealth, the enemy of a meritocracy, is on the rise. Equality of opportunity has been on the decline. A progressive and meaningful estate tax is needed to curb the movement of a democracy toward a plutocracy.”
  2. We (the wealthy) have “benefited significantly” by government investments in schools, infrastructure. and public safety, among other things, so it is “right morally and economically” to have a “significant” tax on large estates because it “promotes democracy by slowing the concentration of wealth and power.”
  3. “It is right to have a significant tax on large estates when they are passed on to the next generation …  it is right morally and economically, since an estate tax promotes democracy by slowing the concentration of wealth and power.”

OK, so what constitutes a sizable estate and how much of it should the government take?

(more…)

Flashback: Buffett says”increase taxes on estates” (since mine is sheltered).

August 28, 2014

OK, he really didn’t say the last part., I made that up.

Since Buffett shed his hypocritical “please tax us more” sham and hopped on the BK inversion deal, I thought it was fair to flashback to some of Buffett’s pro-tax rants and our proposed “Buffett Rule”

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According to CNBC, Warren Buffett is one of several dozen wealthy people who have signed a statement calling for a “strong tax on large estates.”

Buffett & friends say:

  1. “Dynastic wealth, the enemy of a meritocracy, is on the rise. Equality of opportunity has been on the decline. A progressive and meaningful estate tax is needed to curb the movement of a democracy toward a plutocracy.”
  2. We (the wealthy) have “benefited significantly” by government investments in schools, infrastructure. and public safety, among other things, so it is “right morally and economically” to have a “significant” tax on large estates because it “promotes democracy by slowing the concentration of wealth and power.”
  3. “It is right to have a significant tax on large estates when they are passed on to the next generation …  it is right morally and economically, since an estate tax promotes democracy by slowing the concentration of wealth and power.”

OK, so what constitutes a sizable estate and how much of it should the government take?

(more…)

Bluster: Buffett says”increase taxes on estates” (since mine is sheltered).

December 14, 2012

OK, he really didn’t say the last part.

According to CNBC, Warren Buffett is one of several dozen wealthy people who have signed a statement calling for a “strong tax on large estates.”

Buffett & friends say:

  1. “Dynastic wealth, the enemy of a meritocracy, is on the rise. Equality of opportunity has been on the decline. A progressive and meaningful estate tax is needed to curb the movement of a democracy toward a plutocracy.”
  2. We (the wealthy) have “benefited significantly” by government investments in schools, infrastructure. and public safety, among other things, so it is “right morally and economically” to have a “significant” tax on large estates because it “promotes democracy by slowing the concentration of wealth and power.”
  3. “It is right to have a significant tax on large estates when they are passed on to the next generation …  it is right morally and economically, since an estate tax promotes democracy by slowing the concentration of wealth and power.”

OK, so what constitutes a sizable estate and how much of it should the government take?

(more…)

When the estate tax hits real people …

July 22, 2010

Last week, I posted an entry regarding how George Steinbrenner saved his heirs $500 million by dying in 2010 – when there are no estate taxes.

My intent was a chuckle, but a thoughtful reader reminded that the estate tax hits real people in some harmful ways …

When my last grandparent passed in 2005 she left behind a family farm consisting of 1,000 acres in NC.

In order for my father to receive the land he had to pay ~1 years salary in inheritance taxes. 

Not so he could really improve his livelihood, but so he could retain the land that was in the family since the 1800s.

Folks can talk about only taxing the ‘rich’ in society but they’re not the ones having to look my father in the eye while he’s attempting to pull together cash to pay the IRS.

An excellent reminder …. it’s not just the fat cats who get nabbed !

Timing is everything: Steinbrenner’s biggest coup …

July 16, 2010

… was, of course, dying in 2010.

Why ?

No estate taxes.

Steinbrenner’s estate is estimated to be north of $1 billion.

By dying this year, his heirs will pay no Federal estate taxes.

If he had hung on until next, the Feds take would have been about $500 million – assuming that Obama ditches the Bush tax program

Timing is everything.

Full article:
http://dealbook.blogs.nytimes.com/2010/07/14/steinbrenner-heirs-may-save-millions-on-estate-tax/