Former Starbucks Prez Says: Don't Gut Estate Tax

[Trumplestiltskin 5,791]

What they should do is get rid of the provision (in California at least) that allows the IRS to ask people filing their income tax returns to include their last year's refund as income.

[one...two...tree 2,762]

Trying moving to an island starting with nothing and attempt to create wealth - it ain't going to happen.

whenever there is more than one person, there is going to be a vieing for wealth. Take one family who has 10 kids--move them to an island. Building of wealth starts with agriculture. Someone will want more land to have more coconut trees. The one with the most land is going to be the most wealthy. I love on an island. At one point of time it was empty. People came. Population grew. Tribes fought over land. It happens. There was definitely a class system. Wealth just isn't monetary.

Wealth exists only in society. A family unit is the beginnings of a society (groups of individuals). You can't separate society from the wealth or vice versa. Those against the estate tax are essentially saying that wealth is absolute to the individual who inherits it, ignoring the factors that made that wealth come into existence.

Using your island scenario - if within the society of the island, you owned all the coconut trees, all those coconuts aren't going to do you any bit of good without other member's wanting them also. Your wealth depends on their consumption of the coconuts, otherwise beyond your own immediate use of them, they are worthless.

[dalegg 143]

What they should do is get rid of the provision (in California at least) that allows the IRS to ask people filing their income tax returns to include their last year's refund as income.

Oh yeah. I hate that one. They require you to claim your state tax refund as Federal Income. After the first time that happened, I made sure that every year after that I owed tax at the end of the year.

[one...two...tree 2,762]

the Robin Hood tax theory...take from the rich and pass it out to the poor.

its bad to acculate wealth..to be successful....and then to be penalized for it???

I sure like this screwed up thinking.

That's assuming that wealth is created in a vacuum. Take the simplest model of society and demonstrate for me how you can create wealth without the interdependency of other individuals? Without the use of raw materials and land? The estate tax doesn't take away anyone's ability to be wealthy - even extremely wealthy, but it does dampen the chance of wealth being siphoned into the hands of the select few.

Edited August 9, 2006 by Steven_and_Jinky

[Veiled Princess 1]

They require you to claim your state tax refund as Federal Income.

[desert_fox 32]

What they should do is get rid of the provision (in California at least) that allows the IRS to ask people filing their income tax returns to include their last year's refund as income.

Oh yeah. I hate that one. They require you to claim your state tax refund as Federal Income. After the first time that happened, I made sure that every year after that I owed tax at the end of the year.

that because you took it as an exemption in the prior year, but received a refund of part of it....basically your werent entitled to the the original amount that you claimed to have paid CA because they returned a portion of it...now you have to pay the taxes on it.

Also one of the reasons I left CA.......I pay no state income tax now.

[dalegg 143]

What they should do is get rid of the provision (in California at least) that allows the IRS to ask people filing their income tax returns to include their last year's refund as income.

Oh yeah. I hate that one. They require you to claim your state tax refund as Federal Income. After the first time that happened, I made sure that every year after that I owed tax at the end of the year.

that because you took it as an exemption in the prior year, but received a refund of part of it....basically your werent entitled to the the original amount that you claimed to have paid CA because they returned a portion of it...now you have to pay the taxes on it.

Also one of the reasons I left CA.......I pay no state income tax now.

Yeah my tax guy explained it to me, but somehow the very idea just doesn't sit well with me. I'd rather just owe a little bit at the end of the year and not have to do it. I suppose I should be happy I'm giving something back to the government that I don't deserve because it's for the betterment of the society, eh?

[desert_fox 32]

What they should do is get rid of the provision (in California at least) that allows the IRS to ask people filing their income tax returns to include their last year's refund as income.

Oh yeah. I hate that one. They require you to claim your state tax refund as Federal Income. After the first time that happened, I made sure that every year after that I owed tax at the end of the year.

that because you took it as an exemption in the prior year, but received a refund of part of it....basically your werent entitled to the the original amount that you claimed to have paid CA because they returned a portion of it...now you have to pay the taxes on it.

Also one of the reasons I left CA.......I pay no state income tax now.

Yeah my tax guy explained it to me, but somehow the very idea just doesn't sit well with me. I'd rather just owe a little bit at the end of the year and not have to do it. I suppose I should be happy I'm giving something back to the government that I don't deserve because it's for the betterment of the society, eh?

Prob should cut down the amount that they are withholding so that you dont run into this problem again.

[Mr. Big Dog 10,747]

Why should anyone pay taxes on money that was taxed previously??

As in: Why do I pay sales taxes when spending my already taxed income? It's not just the super rich being double and triple taxed, my friend. They can just afford it quite a bit better than those living paycheck to paycheck.

the Robin Hood tax theory...take from the rich and pass it out to the poor.

One could argue that the rich got that way on the back of the poor. I mean, the airlines cutting back on salaries, wages and benefits while the very executives that ran the airlines into the ground enrich themselves like there's no tomorrow - which, thanks to their "skilled" leadership, might very well be the case. Those running the companies into the ground happen not to suffer at all - they make the poor suffer.

In a fair world, the estate tax would be very wrong. But this world is far from fair...

Edited August 9, 2006 by ET-US2004

[desert_fox 32]

Why should anyone pay taxes on money that was taxed previously??

As in: Why do I pay sales taxes when spending my already taxed income? It's not just the super rich being double and triple taxed, my friend. They can just afford it quite a bit better than those living paycheck to paycheck.

no arguement from me...everytime I buy something...Im paying taxes on money that Ive already been taxed on.....coorporation declares a dividend, and pay taxes, then they send you the dividend and you get to pay taxes again.

But youre in Florida...no state income tax and you can deduct you sales tax from your federal return now.

At least where I live...sales taxes are deductable from my income for federal income tax purposes.....dont repeal that law also!!!!

[GaryC 7]

The tax code is way to complicated. Now it's being used for "social engineering" which is wrong. I go with the Steve Forbes way. Straight flat tax. Nothing deductible, no tax shelters. If you earn X amount from any source then devide it by the percent they come up with. That way the ones that make less pay less. The ones that make more pay more.

[desert_fox 32]

The tax code is way to complicated. Now it's being used for "social engineering" which is wrong. I go with the Steve Forbes way. Straight flat tax. Nothing deductible, no tax shelters. If you earn X amount from any source then devide it by the percent they come up with. That way the ones that make less pay less. The ones that make more pay more.

what people are doing actually when they will be subject to estate tax is donate the business to charity, then take out an equivalent amount in life insurance. The donation is deductable, and the life insurance is non-taxable. Great laws we have here when it comes to taxes.

[GaryC 7]

what people are doing actually when they will be subject to estate tax is donate the business to charity, then take out an equivalent amount in life insurance. The donation is deductable, and the life insurance is non-taxable. Great laws we have here when it comes to taxes.

I know. That is why we should just go to the flat tax. There are those that can find the loopholes and get away with not paying anything while those of us in the middle class get the shaft. I say we should stop ALL of this nonsense and just go with one simple flat tax.

[dalegg 143]

Prob should cut down the amount that they are withholding so that you dont run into this problem again.

Exactly, but I'm always afraid someone's gonna knock on my door and ask me where my 11 children are at. Seriously. That's what it takes.

[Mr. Big Dog 10,747]

I go with the Steve Forbes way. Straight flat tax. Nothing deductible, no tax shelters. If you earn X amount from any source then devide it by the percent they come up with. That way the ones that make less pay less. The ones that make more pay more.

I'd go with that. But it ain't ever going to happen. Those profiting ridiculously from the various loopholes and shelters that they have purchased from the legislator won't let that happen.