Re: OT - Where Your Tax Dollars Go...Well At Least $410 Billion of It


tonyp wrote:
<dcaster@xxxxxxx> wrote

tonyp wrote:
1. Buffet's net worth is about $45 billion, mainly in the form of
(vastly)
appreciated Berkshire Hathaway stock. He bought the stock for
essentially
nothing, and never sold it. How much has the $45B been taxed so far?

None. That is one reason I say the inheritance tax is not very
effective.


Did you mistype something, or am I having a brain fart? Buffet is not dead
yet. The only tax he has not paid, "so far", is _capital_gains_ tax. How> does that become "one reason I say the inheritance tax is not very
effective"?


Must be having a brain fart. I said none has been taxed so far. And
there won't be much taxed in the future either. But Buffet is spending
money to avoid paying inheritance taxes now. Which is why the
inheritance tax is not very effective.


Oh no. There will be no tax on the 40 billion given to Charity. But
what makes you think that Buffet will not have established a trust,
that pays him the income during his lifetime, and then pays the income
to his children, or who ever?


Well, I suppose Buffet _could_ have been lying in the press conference, and
later in the Charlie Rose interview with him, Bill, and Melinda.

Did not listen to either Buffets press conference or the Charlie Rose
interview. Did he say that he is not establishing any trusts? Buffet
is obviously giving in installments so as to maximize the deducitions
on his income tax.
I doubt if he emphasized that.

Is this money that is not already in a trust for Paris? Paris ends up
with more money if her daddy establishes multiple trusts for her, and
for her children ( with her as the trustee and controlling the money
until they become of age.) Maybe sets the family home up as a
nonprofit organization for the public to view, with the provision that
Paris, her childen, and their children have the right to occupy the
estate until their death.


Dan, I am not a trust lawyer any more than you are, but I think you are
conflating two different things. A charitable trust designed to support a
do-gooding foundation is one thing. A trust designed to provide a
ne'er-do-well kid with income while keeping her manicured paws off of the
capital is another. There are rules about what constitutes a charity.

Right there are rules about what constitutes a charity. However one
can create trusts which are not charitable trusts. Also a charitable
trust may be very restrictive on it puppose. Lawyers are always trying
to find better ways to set up trusts. A charitable trust just for your
dependents might be illegal. A charitable trust for the education of
children from your neighborhood is probably legal.

Incidently the family home turned into a nonprofit organization with
right to occupy, etc is within easy walking distance of my house.


You are convinced that the rich have ways to pass their capital on to their
kiddies while forcing the tax man to pretend it went to charity, and I don't
suppose anything I can say will dissuade you from that belief -- even though
you admit you don't know what those ways are.

I know some of the ways to pass on capital to the kids. They all are
better than paying 55% to the federal government, but they all cost
more than nothing. Trustees usually get one or two percent of the
assets annually. Go to the library and do a little reading, and you
too will learn ways to avoid inheritance taxes. I admit I don't know
all the ways, not that I don't know what some of the ways area

One thing you might consider, though: if the very rich can exploit all
sorts of mysterious "loopholes" to avoid the estate tax, why are they soooo
desperate to get the tax repealed?

I want it repealed because it creates jobs for lots of people with
nothing of value being created. The same reason I am for simplifying
the tax code. Over half the people in the US pay a professional to do
their taxes. Income tax preparation is also big business.

It is not the Wal-Mart and Mars Candy heirs that are spending the bucks
for the advertising that is currently on the radio in Washington State.


Yeah, _those_ guys spend their money where it counts: in the lobbies of the
Capitol and at Republican fundraisers.

The Insurance companies, banks, etc that are advertising on the radio
also have money to spend in the lobbies of the capital. And you can
bet that they are also doing just that.


Dan

-- TP

.

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