On Thursday, Donald Trump gave one of the most impassioned explanations of what the ‘death tax’ is that I’ve heard on the campaign trail, ever. He was able to cut through the class warfare and managed to explain to people that those who suffer most from the inheritance tax are not the wealthy, but families with small businesses, farms, and just a little bit of property or valuables.
Currently, a person is allowed to leave about five million in property that won’t be taxed. Couples have a ten million dollar or so limit – currently. Hillary wants to raise the amount, in order to make the wealthy pay their fair share. The dirty little secret is the wealthy use trusts in order to avoid the tax man, but someone like my parents, who put everything they had into some land, are the ones who get screwed. Someone like my sister who has put her life’s blood into her business would see her heirs ruined.
Five million may seem like a lot, but when you take a small business and start adding things up, if there is a little bit of property, and if there is a successful reputation, and the value is maybe seven million. After that initial five million is deducted, somehow a family must come up with whatever the prevailing rate is. Most small businesses are cash poor. Basically the heirs must come up with about $700,000 in cold hard cash. In other words – you must either get a loan (fat chance that) or sell the business.
The ‘death tax’ is taxing property which has already been taxed.
Like Trump said, it hurts small businesses and family farms worse than it will hurt Bill Gates. But, tell the left that. Tell Democrats about that. The problem with the Dems is that they appear to want to destroy the middle class.