Death and taxes are inevitable, so let’s link them more closely. I favor a steeply progressive inheritance tax (death tax) because we Americans believe in a level playing field, or we give the idea lip service. This is my suggestion: on estates of $5 million or less the tax rate would be 0%. Between $5 and $15 million, the tax rate should be 50%. Above $15 million, the tax rate would be 100%. Thus the most any person could inherit would be a net of $10 million. Not quite a level playing field, but not an overwhelming head-start either.
Started calculating my income taxes today. Last year when I worked nearly full-time, I paid a higher rate than Mitt Romney. Now that I am living on Social security and a small pension, I expect tp pay a lower rate than Mitt. I would gladly pay 50% or even 70% if I had his gross income of $20 million. Even a tax rate of 95% would leave me with a net income of $1 million per year. I could live on that.
Late breaking news: Mitt’s at it again, adding apples and pineapples. He claims to be paying a higher tax rate because Bain pays taxes on the $20 million or so that he receives and then he pays 13.9% on it. Sorry, Mitt, that does not compute. Do not pass “Go” and do not collect $200 million over the next ten years.
- Death Taxes (lawprofessors.typepad.com)
- Mitt Romney Says His Tax Rate Is Higher Than 15 Percent (huffingtonpost.com)
- Zero to 80: Whats the ideal tax rate on the rich? (theglobeandmail.com)
- Senate Democrats Unveil Buffett Bill (politicalticker.blogs.cnn.com)