Mnuchin Says Estate Tax Repeal Will Help 'Rich People' Most

[highplainsdem]

Source: NYT

President Trump and Republican leaders have positioned a proposed repeal of the estate tax as a way to help farmers, ranchers and small business owners. But on Friday, Steven Mnuchin, the Treasury secretary, offered a significant concession about who would benefit the most if the so-called death tax disappears: the rich.

Speaking at the Institute for International Finance conference, Mr. Mnuchin said the estate tax should be eliminated for both philosophical and economic reasons. He said that many taxpayers give the government half their income during their lives and that they should not have to give away a big chunk when they die — even if their families are wealthy.

“Obviously, the estate tax, I will concede, disproportionately helps rich people,” Mr. Mnuchin said of the administration’s proposal to repeal the measure.

Mr. Mnuchin’s comments contrasted starkly with his boss, President Trump, who pilloried the estate tax in a speech in Indiana last month by saying it is a drag on the working class.

-snip-

Read more: https://www.nytimes.com/2017/10/13/us/politics/mnuchin-estate-tax-repeal-help-rich.html

[They_Live]

1. and the super wealthy really need a lot of help!

So they can buy that Extra boat or car. Every Year.

[Ilsa]

2. Will help rich people only. nt

[Wellstone ruled]

3. Yes sir Re!!!!

[Wounded Bear]

8. That was my first thought too...

Typical RW bullshit attempt to re-frame the message.

[TexasBushwhacker]

18. Yeah, the estate tax only kicks in for estates worth over $5Million

Mnuchin might be surprised that most people don't think of that as upper middles class.

[Ilsa]

22. What's crazy is how many people think

they will have to pay it because the amount used to be much lower, or because they think it applies to everyone..

[csziggy]

27. Cutoff is now at $ 5.49 million per person - almost $11 million for a couple

If a couple is worth $20 million the first $11 million is exempted and the taxes only are applied against the other $9 million. That $9 million is currently taxed at 40% - so the heirs would get $5.4 million of it or a total of $16.4 million.

That's a bit beyond middle class!

[George II]

4. I wish someone would explain these taxes to the average American instead of them...

...."believing" what they're told by guys like the Munchin.

As it is now, the first $5.45 million of an estate is exempt from the tax. How many Americans have estates that are worth more than $5.45 million? Only the rich!

[3catwoman3]

9. It would be interesting...

...to ask the average "man on the street" what the size of one's estate has to be before the estate tax touches you. The average person won't have a clue.

[George II]

10. I never gave it a thought myself until just a few years ago (my mid-60s) As I said.....

....it probably applies to only 1% or less of all Americans.

[marybourg]

11. And that's per person.

A married couple can shelter 2X that amount.

[TexasBushwhacker]

19. They'll start barking about family farms and small businesses

88% of family farms are considered small at less than 250 acres. Sure, if you have thousands of family owned acres in California at $10K per acre you might have to cough up some estate tax or sell some of the land. But the average price of farmland is about $3K an acre and the average LARGE farm is about 2000, so even then only about $500K would be subject to estate tax. Of course these very large family farms have probably been raking big bucks in from farm subsidies.

[George II]

20. Being paid to not grow crops.

[Ilsa]

23. And a good estate planner can help them

plan for how to get it paid, such as by buying life insurance policies, etc.

[csziggy]

28. And if it a real family farm, the parents could gift some of it ahead of time

And reduce the total amount in the estate, avoiding estate taxes altogether.

[subterranean]

5. It will help Trump's heirs tremendously.

[Leghorn21]

7. I know, right? Theyll be able to purchase cigarettes and extra desserts at chow time in

their luxurious super max PRISONS!! And good for them, I say!

[TreasonousBastard]

6. Used to be that if you wrote your kid a check for twenty grand or so, the kid owed taxes on it...

but if you leave your kid a 5 million estate, he pays nothing?

BTW, whoever is leaving the estate isn't paying any taxes-- he's dead!

Now, the kid is getting the money, so shouldn't the kid pay income taxes on unearned income? (Even though the kid may have worked its ass of staying in favor...)

[marybourg]

12. Gift tax and estate tax are now "unified"

and the same large exemption applies to both, but there are reporting requirements for gifts you make while living.

[TreasonousBastard]

15. That's worse-- you bust your ass working for a living and you split it with gummint...

but be lucky enough to be born rich and you owe little or nothing. Same thing with certain investment income which, if taxed at all, is taxed at low rates-- "unearned income" they call it. So's robbing a 7-11.

And the alternative minimum is out, too...

Yay! Winning!

[Angry Dragon]

13. that sound I heard, was that a truth??

[paleotn]

14. Decisions, decisions

File this one in the "no shit, Sherlock" folder or the "Well, duh" drawer? Fucking idiot.

[sinkingfeeling]

16. You think? Since most poor people don't have $5.4 million estates.

[kimmylavin]

17. NO SHIT.

But I would amend that it helps rich kids the most.

[Yo_Mama_Been_Loggin]

21. And that's why he wants it repealed

[JustABozoOnThisBus]

24. How about the Alternative Minimum Tax?

It seems that one is also aimed at the higher-income folks. Are "middle-income" people affected by the AMT?

[muriel_volestrangler]

25. Not just bullshit about estate taxes, bullshit about income tax - "half their income"???

" He said that many taxpayers give the government half their income during their lives"

This is just a lie. Which American pays that much? The top rate isn't even that much. And when people analyse how much rich people actually pay, it's typically under 30% of their total income, thanks to allowances, deductions etc.

[greymattermom]

26. So if there's no estate tax

does the gift tax apply?

[Ray Bruns]

29. And in other news -

water is wet and the sky is blue.
film at eleven

[Bradical79]

30. Disproportionately?

How about it only helps rich people. By the defenition of the tax, it would only help multi-millionaires.