Quote:
Originally posted by sebastian_dangerfield
That's socialism. I don't give a shit that she was born on home plate. Somebody's always going to be ahead.
And I still don't get why the estate tax repeal is going to cost me money. Is there something in the actual law itself that creates a tax burden on middle class people? I thought it was just a straight up repeal of the estate tax.
If they just repeal the estate tax, why does that necessarily make my taxes go up? My taxes would only go up if they repealed the estate tax AND decided to make up the loss of revenue by adding new taxes on the middle class, wouldn't it. If you leave my taxes the same, but give the rich a break on the estate tax, why would I care?
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Right now, property that passes at death gets a stepped up basis. Those 10,000 shares of IBM stock that Gramps bought at $5 back in 1962, they now have a basis equal to whatever the close waa on IBM on the day Gramps dies. With the loss of a basis step-up, the stock keeps its $5 basis. So, when you go to sell the stock to pay for a nursery for Sebby, Jr., you get taxed on a $100/share capital gain.
Does that clear it up?
