Buffett, Soros Call for Higher Estate Taxes

[Primemuscle]

Buffett, Soros Call for Higher Estate Taxes

Billionaire investors Warren Buffett and George Soros are calling on Congress to increase the estate tax as lawmakers near a decision on tax policies that expire Dec. 31.

In a joint statement Tuesday, Buffett, Soros and more than 20 other wealthy individuals asked Congress to lower the estate tax’s per-person exemption to $2 million from $5.12 million and raise the top rate to more than 45 percent from 35 percent.

An estate tax structured this way will “raise significant revenue to reduce the deficit and fund vital services, will only be paid by the top one percent of estates, will raise more from the wealthiest estates” and will simplify compliance, said the statement. It also was signed by John Bogle, founder of mutual fund company Vanguard Group Inc., and former President Jimmy Carter.

The renewed push for raising an estate tax faces significant opposition in Congress, where Senate Democrats including Max Baucus of Montana and Mark Pryor of Arkansas have joined Republicans to support the current estate tax parameters. That intra-party dispute caused Democrats to leave estate tax changes out of legislation they passed July 25 extending income tax cuts.

Changes to the estate tax are among the more than $600 billion in automatic spending cuts and tax increases scheduled to take effect in January.
 
If Congress does nothing, the amount one could exempt from the estate tax would drop to $1 million and the rate would increase to 55 percent. Obama wants to reinstate the 2009 levels, which include a $3.5 million exemption and a 45 percent top rate. Compared with continuing current policies, Obama’s plan would raise $119 billion over the next decade, according to his budget proposal.
 
In 2013, under the plan favored by Republicans, there would be an estimated 3,600 taxable estates in the U.S., according to the nonpartisan congressional Joint Committee on Taxation. Obama’s plan would double that number to 7,200. If Congress does nothing, 55,200 estates, or 2 percent of estimated 2013 decedents, would owe taxes.
 
Buffett, 82 — who is worth $46.7 billion —has long been a supporter of estate taxes. He testified before the Senate Finance Committee in 2007 and said the tax was necessary to “prevent our democracy from becoming a dynastic plutocracy.”

Buffett has committed most of his wealth to charities, including the Bill & Melinda Gates Foundation and organizations started by his three children. He has urged billionaires to agree to donate at least half their wealth in a campaign he co-founded with Microsoft Corp. Chairman Bill Gates, the world’s second-richest person, who’s worth $62.7 billion.
 
Soros, 82, is worth $21.6 billion, and has donated more than $3 million to Democrats and has financed groups such as the American Civil Liberties Union.
 

Copyright 2012 Bloomberg News. All rights reserved.

[magikusar]

why dont they just give all thier own $$ and leave rest of us alone

there is no reason why a government should take money fairly earned by productive individual at his death

the person should send the money to whoever they want tax free

[tu_holmes]

why dont they just give all thier own $$ and leave rest of us alone

there is no reason why a government should take money fairly earned by productive individual at his death

the person should send the money to whoever they want tax free

You do realize why the Estate tax existed didn't you?

They wanted to make sure that there were no legacies of money... That's how monarchies were formed in the old days... Money and power handed down from parent to child.

It's to avoid the "divine right" syndrome that it creates.

I don't know how I feel on the subject to be honest.

[tbombz]

Like all government, it rests upon coercion and therefore is wrong.  However, accept government as a given and assume for pragmatic reasons that you are a utilitarian when it comes to fiscal policy.  I think its going to be wisest to place taxes on inheritances over a certain amount and on income over a certain amount.  I really don't think the laboring class should pay for a government that mostly benefits the rich.

[Primemuscle]

why dont they just give all thier own $$ and leave rest of us alone

there is no reason why a government should take money fairly earned by productive individual at his death

the person should send the money to whoever they want tax free

This might surprise you, but I agree.

I think we should pay taxes on what we earn and not on what we leave behind when we die.

[Primemuscle]

Let me just say that  I welcome all discussion on this subject.

When I die and that won't be far into the future, I am not leaving an estate to my two children that is even remotely taxable under current law. Let me just say that I am willing to pay whatever taxes I am due on my income while I am alive, but I have issues with taxing the paltry sum I will leave my children.

[Fury]

Meanwhile, both of these scumbags filter as much money to charity as they possibly could.


Has Berkshire paid the $1 billion in back taxes it owed on one of its companies yet?

[Soul Crusher]

Wonder why?   Could it be that both have substantial holdings in life insurance companies? 

[Soul Crusher]

Let me just say that  I welcome all discussion on this subject.

When I die and that won't be far into the future, I am not leaving an estate to my two children that is even remotely taxable under current law. Let me just say that I am willing to pay whatever taxes I am due on my income while I am alive, but I have issues with taxing the paltry sum I will leave my children.

The govt doesn't have an issue w it, pay up sucker. 

[GigantorX]

You do realize why the Estate tax existed didn't you?

They wanted to make sure that there were no legacies of money... That's how monarchies were formed in the old days... Money and power handed down from parent to child.

It's to avoid the "divine right" syndrome that it creates.

I don't know how I feel on the subject to be honest.

I understand where you are coming on, TuHolmes, and agree to a certain extent. What I don't like is that it ends up being triple/quadruple taxation at the end.

Also, what if a family member has a business, farm etc? One of the criticisms of the Estate Tax is that often times the business or farm or whatnot has to be sold/chopped up to meet the tax obligation.

It seems like an AMT situation where it sounded good when it only taxed the ultra wealthy but now it hits too many people.

[Soul Crusher]

I understand where you are coming on, TuHolmes, and agree to a certain extent. What I don't like is that it ends up being triple/quadruple taxation at the end.

Also, what if a family member has a business, farm etc? One of the criticisms of the Estate Tax is that often times the business or farm or whatnot has to be sold/chopped up to meet the tax obligation.

It seems like an AMT situation where it sounded good when it only taxed the ultra wealthy but now it hits too many people.

Again - why give the money to the govt instead?   Like giving a junkie more coke. 

[whork]

Like all government, it rests upon coercion and therefore is wrong.  However, accept government as a given and assume for pragmatic reasons that you are a utilitarian when it comes to fiscal policy.  I think its going to be wisest to place taxes on inheritances over a certain amount and on income over a certain amount.  I really don't think the laboring class should pay for a government that mostly benefits the rich.

You got class as well as mass

Great post.

[whork]

Meanwhile, both of these scumbags filter as much money to charity as they possibly could.


Has Berkshire paid the $1 billion in back taxes it owed on one of its companies yet?

You dont like charity?

[whork]

Wonder why?   Could it be that both have substantial holdings in life insurance companies? 

So you are saying they want have people to live longer

[whork]

Again - why give the money to the govt instead?   Like giving a junkie more coke. 

Military, infrastructure, medica, lawyers etc..

Its a big bill.

[whork]

Lets try again you seem to have some issues.

You dont like charity?