Tag Archives: estate tax

business news, national news, political news

Tax ‘reform’ unveiled … now let’s see how it affects POTUS

I believe another mega-rich guy, the Texan H. Ross Perot, once said that the “devil is in the details.”

With that, one of the details of Donald John Trump’s tax proposal must include just how this “reform” affects the individual who has pitched it.

Yes, I’m talking about tax returns. Release them, Mr. President.

Treasury Secretary Steven Mnuchin says the president will not release those tax returns. There’s been enough information released already, he said. I disagree, quite naturally, with what the secretary suggests.

The major points about the president’s tax plan include a dramatic reduction — from 35 percent to 15 percent — in corporate income taxes for small businesses and a huge increase in the standard deduction for individuals’ tax returns.

As The Hill reported: “The plan would repeal taxes that mostly affect wealthy Americans, such as the alternative minimum tax for individuals and the estate tax. But it would also ‘eliminate targeted tax breaks that mainly benefit the wealthiest taxpayers,’ according to the one-page outline released Wednesday.”

Why is release of the president’s tax returns relevant? He has not divested himself of his huge business interests. Therefore, he stands to be affected in some fashion by what he has pitched. Americans have the right to know just how Donald Trump’s portfolio is affected.

He isn’t likely to release those returns just because many of his fellow Americans want him to do so. Still, it’s worth making the demand yet again. I believe I will keep yammering about the returns during Trump’s time in office.

But here’s another wrinkle.

How does the tax plan affect revenue to pay for at least two major Trump proposals: infrastructure repair and, yep, that dadgum wall.

Trump wants to spend about a trillion bucks to fix highways, bridges and airports. Will these tax cuts reduce cash flow into the Treasury, making it impossible to “pay as you go” on these projects?

Oh, and the wall is going to cost — according to varying estimates — as much as $25 billion. How does the president intend to pay for that project? Do not tell me “Mexico is going to pay for it.” That will not happen. 

As it’s often said: The president proposes, Congress disposes. You can bet your last nickel that congressional progressives will continue to insist that Trump release his tax returns as condition for any tax overhaul.

My gut tells me the disposition of this tax plan — absent the president’s release of his tax returns — continues to be one of the great mysteries in the nation’s capital.

business news, national news, political news

Estate tax is worth keeping on the books

Time for a confession, which some of you might already have suspected.

I used to write editorials for daily newspapers that ran counter to my own beliefs and principles. Why? Well, as a former colleague once told me: If you take the man’s money, you play by the man’s rules.

So, there you have it. I was getting paid to write editorials for newspapers that had different slants than mine, so I wrote the words, gritted my teeth on occasion — and then accepted the paycheck.

One issue with which I had a disagreement with our newspaper’s editorial policy was the estate tax, or “death tax,” as some have called it. My bosses wanted it repealed. My former publisher at the Amarillo Globe-News (not the guy who runs the place now, but his predecessor) was adamant that we repeal the estate tax. Why punish heirs to estates, he argued, when the person who built the wealth wants to be able to hand it down to his or her heirs?

I’m sure my ex-boss is happy with the U.S. House of Representatives voting this week to repeal the estate tax.

I am not.

http://www.washingtonpost.com/blogs/plum-line/wp/2015/04/17/why-are-republicans-pushing-estate-tax-repeal-its-their-nature/

As Paul Waldman writes in the Washington Post: “Republicans say that they aren’t really trying to help wealthy heirs; instead, this is motivated by their deep concern for the fate of family farms and small businesses. But today, the first $5.43 million of any estate is exempt from taxes. That’s the single most important fact to understand about this tax.”

Did you get that? Nearly $5.5 million of any estate is tax exempt!

My congressman, Mac Thornberry, R-Clarendon, Texas, has been at the forefront of the estate tax repeal effort since joining Congress in 1995. He’s got a dog in that hunt. His family owns a lot of ranch land in Donley County and he doesn’t want any of it taxed when the day comes to hand it over to his heirs. I understand Thornberry’s interest in repealing the estate tax.

Here’s a bit more from Waldman: “According to the Joint Committee on Taxation, ‘In 2013, the most recent year for which final numbers are available, there were 2.6 million deaths in the United States, and 4,700 estate tax returns reporting some tax liability were filed. Thus, taxable estate tax returns represented approximately one-fifth of one percent of deaths in 2013.’”

One-fifth of one percent!

Is that enough of a tax to call for its outright repeal? If yes, then who benefits from it? I reckon it’s the extremely wealthy who have estates valued at far more than $5.43 million, which already is exempt from taxes. Remember?

What will be the fate of this repeal effort? If the Senate approves it as well, President Obama will veto it.