3 ms·

Does one need an estate tax if there's either a tax on wealth or a land value tax?

bsbechtel 11y ago
Keep in mind any tax on non-liquid assets that don't generate a lot of free cash flow can be very burdensome to those who control those assets. I believe this is why some states have moved away from death taxes....family farms were being sold off to pay taxes from the previous generation.
- jellicle 11y ago
  There's no evidence of this ever happening. http://america.aljazeera.com/opinions/2015/3/the-estate-tax-isnt-destroying-family-farms.html http://america.aljazeera.com/opinions/2015/3/the-estate-tax-...
- crdoconnor 11y ago
  That was the "Joe the Plumber"/"CRA caused the financial crisis" story of estate tax.
- hackuser 11y ago
  An interesting but related point about the power of propaganda: The family farms story is a myth created (or maybe first given authority) by Bill Beach at the Heritage Foundation around 1996. It was part his plan for the rhetoric and talking points of an assault on the estate tax.[1] repeal proponents are still unable to produce a single, verifiable example of a farm or business closing due to the burden of estate tax payments. [as of 2013] It's amazing to think that one person can sit down in a room and plan terminology and a story like that, and here we are almost 20 years later and people blithely repeat it. It's a bit scary too. The term "death tax" was part of the same planning, though I'm not sure it was Beach's idea. I highly recommend the article below, which will change how you look at politics forever: [1] http://www.psqonline.org/article.cfm?IDArticle=19132 http://www.psqonline.org/article.cfm?IDArticle=19132
  - ams6110 11y ago
    "If you like your doctor, you can keep your doctor"
  - bsbechtel 11y ago
    Actually I had never heard of this made as a political argument before. It was a family friend who had to sell off assets in a small manufacturing business to pay off the taxes due on their inheritance. So yeah, it happens.

Keep in mind any tax on non-liquid assets that don't generate a lot of free cash flow can be very burdensome to those who control those assets. I believe this is why some states have moved away from death taxes....family farms were being sold off to pay taxes from the previous generation.

jellicle 11y ago
There's no evidence of this ever happening. http://america.aljazeera.com/opinions/2015/3/the-estate-tax-isnt-destroying-family-farms.html http://america.aljazeera.com/opinions/2015/3/the-estate-tax-...
crdoconnor 11y ago
That was the "Joe the Plumber"/"CRA caused the financial crisis" story of estate tax.
hackuser 11y ago
An interesting but related point about the power of propaganda: The family farms story is a myth created (or maybe first given authority) by Bill Beach at the Heritage Foundation around 1996. It was part his plan for the rhetoric and talking points of an assault on the estate tax.[1] repeal proponents are still unable to produce a single, verifiable example of a farm or business closing due to the burden of estate tax payments. [as of 2013] It's amazing to think that one person can sit down in a room and plan terminology and a story like that, and here we are almost 20 years later and people blithely repeat it. It's a bit scary too. The term "death tax" was part of the same planning, though I'm not sure it was Beach's idea. I highly recommend the article below, which will change how you look at politics forever: [1] http://www.psqonline.org/article.cfm?IDArticle=19132 http://www.psqonline.org/article.cfm?IDArticle=19132
- ams6110 11y ago
  "If you like your doctor, you can keep your doctor"
- bsbechtel 11y ago
  Actually I had never heard of this made as a political argument before. It was a family friend who had to sell off assets in a small manufacturing business to pay off the taxes due on their inheritance. So yeah, it happens.