Estate tax/ min. wage: I solve two problems

Estate tax: Exempt the first $5 million of all estates. Give the IRS the authority to adjust that number every year in line with inflation (unless Congress specifically moves to block it). Never think about it again.

Minimum wage: Set the minimum wage at $7 per hour. Give the Labor Dept. the authority to adjust that number every year in line with inflation (unless Congress specifically moves to block it). Never think about it again.

Sound good?

:)

In terms of purchasing power, the minimum wage was highest in 1968. Restore it to that level and index it to inflation as you say.

http://www.fiscalpolicy.org/MinimumWageGraphs.pdf

Also, read this:

* During the 1950s and the 1960s, the minimum wage averaged 50 percent — or half — the average wage of workers in nonsupervisory positions.

* As noted, the minimum wage has now fallen to 32 percent — or less than one-third — of the average wage of about $16 for nonsupervisory workers. This is the lowest share in more than five decades. (See Figure 1 and Table 1.)

* Research has shown that the fall in the relative value of the minimum wage has contributed to the persistent increase in wage inequality since the latter 1970s.<2>

http://www.cbpp.org/9-1-05mw.htm

I question whether a rate that high would actually pass. And the result would be zero raise for now -- and the risk of having more long periods with no raise at all.

But sure, the rate should be as high as would pass. The Dems could start by asking for $10 per hour and see what they can get. If we re-take the House and/or the Senate, passage of a higher rate would be easier. But there'd still be the threat of a presidential veto.

If you aim at 10, you're more likely to get 8 on the floor. If you aimed at 8, you'll probably end up with something lower. It's how you set up the terms of debate.

you don't need money when you're dead, estates over $2 million should be taxed and heavily

$5 million is ridiculous, it means you create an entire class of people who can go for generations w.out having to work anything real ever just for the privilege of being born

as for $7 an hour buy a home and raise kids and pay doctor's bills on $7 an hour and get back to me

that proposal is really what's wrong w. this country -- we are more caring of the rich, who can take care of themselves, than of the people who do the hard dirty work of the world

minimum wage should be $10 an hour and that's really too low at that

nobody needs to inherit $5 million, that is just totally totally unfair in a world where other people slave all their lives for nothing

I am trying to live in the world of the politically possible here.

When you go on a game show or to Vegas and win, you pay taxes on money "won".. When you win the Gene-Pool Lotto, you should expect to pay taxes as well.. simple...

Lots of those 'family fortunes" were BUILT on tax deferred shenanigans,l so it's only fair to pay the piper at the end of the road..

The people inheriting those fortunes did nothing more to earn it, than slide out a birth canal, and live a cushy life ..

I have no problem with an exemption for the first $3m, since houses are outrageously inflated these days, but after that...pay the taxes.

Where there is a lot of farmland being developed into housing, the farmers that want to remain have their acreage valued at $2000+ per acre. a 500 acre farm = $1,000,000. If there is a pond large enough to shoe horn a couple homes around, you could be assessed even more value for "lakefront", and all the outbuildings your great grandfather built with his own two hands and the help of his neighbors are now valued at one half million dollars. All of a sudden, $2 million isn't so much. We need to make the distinction between cash and situations like that, where a family is forced to sell to wealthy developers to build more McMansions just to pay the taxes on the rest of the land.

If we want to preserve any family farms at all, we need to keep this in mind...

I like it, but I would change it two ways:

Estate tax: Eliminate it. Never think about it again.

Minimum wage: Set the minimum wage at $7 per hour. Mandate that the Labor Dept adjust that number every year in line with inflation. Never think about it again.

If you just "give them the authority", they could choose not to exercise that authority. You have to command them to do it. It's the same as issuing concealed carry permits. You can't just give law enforcement the authority, you have to command them to issue them.

I think we would be moving one step backwards to a neo-feudal society if the rich are allowed to accumulate vast sums of money and property over several generations.

I can't think of a legitimate job on this earth that deserves less than that per hour.

As far as the estate tax goes, it's been taxed already. I never understood why on earth it should be taxed again when people die. I never thought of it as a political issue, just as a "it was their money, the government shouldn't have any rights to it when they die" type issue. I know that isn't popular with some here but I don't forge opinions on popularity anyway. I figure the lost taxes should be made up from having better tax laws while they're alive to begin with.

It's like saying what you pay your maid or butler has "already been taxed" (because you paid income tax when you got that money) ... but it's even worse than that. Estates include assets (such as common stocks) which have unrealized and untaxed capital gains.

Example: Uncle Herman dies and leaves 5000 shares of Microsoft he bought in 1990. When the estate was formed, that stock was worth perhaps 200 times more than it cost. That could be millions. It has NEVER been taxed! Whomever gets Uncle Herman's estate, according to you, shouldn't have to 'lose' any of it ... but if Uncle Herman employed them to clean his house, they got taxed on every dime they earned from their labor.

FWIW, according to tax laws, they could sell that stock and only pay tax on the gains since the estate was formed. ALL the gains prior to then escape taxation.

Why should someone pay tax on what they WORK for at the highest rates and pay NOTHING on what they get because someone died and someone else did the work?

With all due respect, that's just fucking insane!


The reason the position you advocate "is not popular" is because it's grossly unfair and a total giveaway - "free money" to the wealthiest. Many people may be stupid - but not all people are that stupid, so it's "unpopular."

I think when the stock is cashed in it should be taxed as it would've if the original owner had cashed it in. I think those taxes should go back to when it was bought originally. But I think any money in the bank shouldn't have any penalties against it for being handed down to kin. If I made millions some day I should have every right to have what I didn't spend given to my children without having it taxed again. That's just simply the way I feel. I don't agree with the free money argument because it was earned to begin with. It isn't the government's property, it was the person that died's property and it should be able to be passed on. If I have a table and I die I should be able to give that piece of MY property to any one I want. I look at financial earnings the same way. I also don't understand the threshold argument. Why should it all of a sudden be taxable because the estate is above a threshold? According to your own statements you say it is free money, well isn't getting 100 grand free money too? Under your logic shouldn't that be taxed as well?

My position has nothing to do with whether somebody is rich or not, as we are all people and I don't base opinion on level of wealth. My position I hold is merely because I feel that once you own something, you should have the right to keep it and give it to anybody you want to, whether that is property, money or anything else.

I just never understood the fairness in the alternative argument. I just see it as black and white to a degree. Whether I have 5 dollars or 5 million dollars I should be able to give it in full to whomever I want to when I pass on. (But I do agree that passing on stock should carry the same tax responsibilies with it as it had when originally held).

... when it's the transfer of money or assets (a transaction) that's taxed. We're not talking about a wealth tax (which doesn't exist in our country) or a property (civic services) tax. We tax the transfer of money (or other assets). A "capital gains tax" is a tax on the proceeds of the sale of an asset and it's calculated according to the value of the transaction.

That's why memes are effective - they create false paradigms. People who are infected by these memes start thinking in ways that don't correspond to reality. Money is NEVER taxed!

The transfer of money/assets is taxed, whether it's wages for labor or the capital appreciation of an asset between purchase and sale (acquisition and disposal).

The specious notion of the "money has been taxed" would exempt wages and everything else - since people have to obtain the money (in a taxable transfer) before they can dispense the money (through purchases, hiring, or death) in absolutely every instance.

You make some very good points and I appreciate your respectful response. When I open my mind further I can see exactly what you're talking about. The problem is that when I think about any form of tax I find myself having disgust at the system.

I think the fact that overtime gets taxed more than straight time to be ass backwards. I find the gift tax and estate tax rates to be insulting and believe that no one, no matter what their income, should ever pay a tax over 25% of anything for anything ever for any reason. I think a quarter of the earnings is enough for the good ole government. To think of the notion that if I had 10 million dollars I'd have to first give 5 friggin million of it to Uncle Sam before giving it to my kids sickens me. I just find that to be ridiculously overtaxed.

I think the lower class should pay almost no taxes and the middle class should pay no more than 15 to 20%. I think the upper class should not have to pay more than 25%, ever. I do, however, think loopholes for the upper class need to be closed. But one fourth of anyone's earnings should always be sufficient. I know some say "But where would the government get money from? Don't you realize how much money they'd lose?". Well to that I say do you have any idea how much money they waste? I'd bet my bottom dollar if we went through what the government spends on shit with a fine tooth comb we'd find that the things that mattered could be paid for with less than 50% of what they currently bring in.

... by WORKING for it, they'd be taxed at a far higher rate than if you merely died and they collected it in their La-Z-Boys.

How fair is that?

Call me a nut, but I don't see how it's even in the neighborhood of fair to tax people for the income they EARN through their labors (which enrich 'owners') at a higher rate than what they get because someone died or because someone else did the work (stock dividends).

Remember ... these are all taxes on money/assets transferred from one person/company to another. Income. The income from the DEATH of another person is taxed the LEAST.

That's part of why I say it's the "politics of necrophilia" - whether is soldiers dying in the Middle East to enrich global corporatism or people with wealth dying to enrich their nephews and cousins. Think Walton family - Wal*Mart, not Mountain.

I've been thinking a bit about the estate tax situation and at first I didn't consider how rough it is on prvately owned family farms that are often valued at a few million dollars because of all the land and equipment. These folks are rarely millionaires by any stretch in reality and those are the folks that get hurt.

Frankly I think your idea of not taxing estates until they exceed 5 to 10 million is the better way to go. Those who can afford it pay and those that would be hurt aren't. Of course that means some slip through, but close the loop-holes in the code that the obscenely wealthy use to avoid paying taxes, and I think it'll be better all around.

And the minimum wage definitely needs to go up.

They vote themselves a 25% raise, minimum wage goes up 25%.