Saturday, May 30, 2015

Top Rung Rich: Tax Avoiders, Dodgers, or Evaders — Tints of Green

Kick up those fancy heels that match those fancy cars

Latest (actually recurring) GOP dance move for the ultra rich — call it: TAX BREAK DANCING.

This was published just in time for the 2015 tax prep and filing season from Washington Post here.

The Republicans spearhead by Rep. Paul “Marathon” Ryan (R-WI) are once again manning the barricades against the same old menace: Estate taxes or as the GOP loves to call them “Death Taxes...”

That defensive position has been true for the last 35 years or so, and no less so today with Ryan chair of the powerful House Ways and Means Committee, easily explained as the 
permanent committee of the House which makes recommendations to the entire House on all bills regarding raising revenue, or for legislation concerning taxation, customs duties, and international trade agreements.

The GOP is a staunch supporter of the rich (that “trickle down” thingy since the Reagan era) and they have the voting record to show their efforts to if not end, then greatly reduce the estate tax. In other words, they stand in solidarity with the heirs of the top 0.2 percent.

Call this another WTF moment in a string of WTF moments, shall we?

So, how many households pay the estate tax now? Um… seems it’s about 2 out of every 1,000. Why so low? And why make that number even lower especially with the first $5.43 million that an individual has, or $10.86 million for a couple, that’s the amount that is not taxed when they pass away. Just pass it on and bingo: no taxes.

That estate tax, even with the current 40 percent top rate, 
only kicks in for anything more than that, and leave it to well-paid and very creative tax accountants and who find big deductions. That adds up fast to a very large shield that covers a lot and protects them from that darn greedy hand of Uncle Sam.

Finally, it's important to remember that there's a difference between the top marginal tax rate and the effective tax rate that estates pay say compared to you and I.

The real dividend and not just to the top crust to keep more of their investments, much is not really earned per se, goes to those who work to get them the breaks and usually just in time for reelection … call it campaign cash – to their fav charity as it were (I just made that up, but it sure seems that way) – you help me and I’ll help you. 

What’s the name for that that …. Think, think; oh yeah quid pro quo (hard to prove, but pretty self-evident nevertheless).  

Thanks for stopping by. 

No comments: