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13 January 2012

Comments

billy T

And that means everything you own, including the “imputed rental value of owner-occupied homes”. Well, probably most of the 47% who pay zero federal income tax would have no problem with the idea. Reminiscent of John Edwards Two Americas. I suppose this would be like CA's inventory/eqipment tax on businesses. So, you paid off your mortgage finally, bought a little tractor for the back 40, have 3-4 classic cars that you collected thru the years and intend to restore, have some money in CDs, a now valuable stamp collection Grandpa left you in his will years ago, an Apple laptop that you bought on payments, Momma's antique furniture she passed down, some stock in an IRA, a 401k, some "collector" guns in a safe, new doubled paned windows, and lets not forget that deck you built nor the remolded kitchen and little granny unit you paid thru the nose for permits and the cost of having it built. Now, suddenly after years of hard work somebody says you got to pay a yearly tax on it all, including that antique dresser you spilled Indian ink on as a toddler and Grandpa's stamp collection? Sounds like the one making the money would be the estate appraiser that you now need to call every year.

Dave Cranfield

And don't get me started on the recapture of depreciated assets.

Russ Steele

In addition to asset taxes we have the hidden taxes of government regulation, which we all end up paying, in addition to our asset taxes. According to the Heartland Institute, the most expensive and burdensome regulations in 2011 include:
• CAFE (Corporate Average Fuel Economy) standards for light-duty vehicles: $141.4 billion.
• Utility MACT (Maximum Achievable Control Technology) rule requiring power plants to reduce emissions of mercury and certain other pollutants: $10.9 billion.
• Greenhouse gas standards for long-haul and heavy duty trucks: $8.1 billion.
• Conservation standards for lamp ballasts. Cost: $6.9 billion.
• Federal school lunch standards: $6.8 billion.”
As a consumer and taxpayer, we pay for these regulations every day. Our food and other products go up by 8-10% in a year, just due to these regulations.  Why is the United States now a debtor nation (we owe more than our GNP)?  because government created the policies to make this a Third World nation.

Brad Croul

Sounds like the tax attorneys are safe for the foreseeable future. I predict a lot of assets being transferred to corporations, LLCs, foundations, etc. to get them out of the "personal" asset class.
It would be a mistake to eliminate charitable or philanthropic contribution deductions as those gifts "can" go directly to helping those most in need.
Perhaps a distinction needs to be made for those non-profits that work to provide for the health, welfare, and safety of the less fortunate. "McKinnon's 3% solution" would kick in if the wealthy did not already donate at least 3% of their net worth to organizations trying to save lives and protect the less fortunate from sickness and starvation (sorry, Greenpeace, the Heritage Foundation, etc. would not qualify ). Foundations are already required to distribute 5% of their assets annually. This would, at least, keep the 3% out of the hands of the government.

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