Ahh, OK. But I think it may be a simpler than that for the 1% of wealthy Americans that had to pay inheritance taxes. They think great wealth entitles them to special considerations that "common people" don't rate.
No you didn't misunderstand me. I fricked up the number. It had been a long time since I looked at the stats. In actuality about 60% of wealth is unrealized capital gains. Because that is where the break is. I said earlier the effective rate is under 15%. It is now, with the rise in applicable estates to $10.8 million it is more like 12%. Remember an $11 million dollar estate only has a $100,000 tax due, and that is if no measures have been taken to avoid the tax. If the basis is increased there is no capital gains tax due. If I inherit $1 billion dollars in stock, the cost basis is $1 billion for me. If I sell it tomorrow for $990,000,000 I get to take a $10 million loss on my tax return. and again the number has changed greatly less than 2 in 1000 estates are now subject to the tax.
That number sounds more plausible. Where does 10.8 come from? I thought it was 5.4? But some people who are taxed may not have any deferred capital gains and some may have well over the 60%. Why not just tax the money that has a step up in basis. Why hit everyone even if it comes out to the same number?
I'm not saying that you can't get around to the connection you've made but I know a lot of raging conservatives and have never heard them complain about the estate tax as reparations. I've never read an article or heard of that on the news either. I just don't think it's that common of a belief.
as i said a black guy was pushing this on fox news the other day. i have heard it many times before,also about ACA as well being a form of reparations. Crazy stuff no doubt, but there is plenty of belief of this and it goes with the territory of the first black president.
