You’ve most likely heard the adage, there’s nothing certain but death and taxes. So now, President Obama and his White House minions think it’s good policy to increase the taxes when one dies. These death taxes come in two forms. The estate tax, which taxes the value of a property owned, and an inheritance tax, paid by those who inherit the property.
According to a report in Forbes, America’s current death tax rate is 40%, which is the “fourth highest rate in the industrial world.” But Obama wants to increase this to 68%, which would put America’s estate tax rate as number one in the world, even though other nations are in the process of “reducing or repealing” their estate taxes. Having the highest death taxes in the world is not a coveted position.
While Whitehouse.gov touts that what they are creating is “a simpler, fairer tax,” there’s no proof that this move will in any way help the dwindling middle class. In fact, Taxfoundation.org states that the opposite is true. Repealing the death tax could “lead to the creation of 150,000 jobs” and in time “increase federal tax receipts by $8 billion.” Sounds like something our present economy could use.
CNS News reports that death taxes are a “deterrent for leading a better life.” This is especially the case for family – owned businesses, as Obama’s new policy regulations would make it more difficult for families to use the “valuation discount” which currently in effect. If these discounts are removed, like Obama wants, a family owned business might have to be sold just to pay the taxes. This leads to job losses and the destruction of wealth accumulated over a lifetime.
Obama is not asking Congress to take up legislation on this matter. He’s bypassing them completely. And no where is there any word or hope of simplifying our lives with a flat tax. The new recommendations are already published as guidelines on the Treasury Department’s website. Comments from the public are being accepted until November 2, 2016. In addition to death taxes being increased, Obama’s Treasury Department are also looking at closing tax loopholes available in trusts.
There are many ways to destroy a nation. Decimating the hard earned wealth of families is just another notch on Obama’s belt.