Topic: Taxes
Club for Growth Op-Ed: "Death Tax is Unfair"
Posted on Dec. 16, 10 | 11:34 AM by Andrew Roth | Topic: TaxesOpposing view on inheritances: 'Death tax' is unfair
By Chris Chocola
There are two questions about resurrecting the 'death tax': the economic question and the moral question.
The economic question is simple: Does the estate tax help create jobs, grow the economy or improve our country. In every case, the answer is no.
First of all, it is unfair to retax money that has already been taxed, at least once, as income, capital gains or dividends. Washington already got its cut when the money was earned or invested. Congress has no outstanding claim on what is left over.
Nor does the estate tax generate all that much revenue. By the standards of President Obama's Washington, the $21 billion the death tax brought in the last year it was in effect is practically a rounding error.
Nor does it help the economy.
Let's say an entrepreneur's business is worth $15 million. Under the proposed estate tax in the bipartisan deal, the day he dies, the businessman's kids would owe Uncle Sam $3.5 million. If they don't have that kind of cash lying around — and no small businessmen do — they have to sell the family business to pay the taxes. The company that buys the business sells off its assets and lets the employees go. A successful business disappears, and experienced employers no longer create jobs. In fact, hundreds of people lose their jobs. All so Congress can increase revenue by a thousandth of a percent? I don't think so.
The economic argument holds up even if the heir to a vast fortune is a total embarrassment. Even if he never gets a real job and wastes his life away buying sports cars, comic books and expensive booze, the money he pumps into his local economy — via the car dealerships, book shops and liquor stores — will create more jobs than anything Congress would do with it.
Which brings us to the moral argument, which is what this is really all about. Does the money you earn over the course of your life belong to you, or does it really belong to the government, which generously allows you to keep some of it for a while?
On this policy, as so many others, if we want the right answer, we have to ask the right question.
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We're Number One!
Posted on Dec. 16, 10 | 09:13 AM by Andrew Roth | Topic: TaxesMember Comments (0) Add a Comment
Rush Limbaugh: "I Hope This Deal Fails"
Posted on Dec. 10, 10 | 03:41 PM by Andrew Roth | Topic: TaxesSenator-Elect Pat Toomey on the Tax Deal
Posted on Dec. 10, 10 | 03:22 PM by Andrew Roth | Topic: TaxesChocola Talks About Tax Compromise with Neil Cavuto
Posted on Dec. 10, 10 | 08:54 AM by Andrew Roth | Topic: TaxesA Crap Sandwich for the Left
Posted on Dec. 08, 10 | 03:46 PM by Michael Connolly | Topic: TaxesThe simple answer is that conservatives opposed to the plan are free to fight it, on principle (as the Club is doing). Conservatives may have been disappointed by, say, Medicare Part D or Harriet Miers, but they weren't furious about it. They assessed the situation, decided it was unacceptable, and went about trying to stop it, irrespective of the president's party. Same as now.
The thing about the hard left here, the reason they're so angry, is that they really have no choice but to take it. They know that if they bring the compromise down, the Democrats are in a worse position on the tax issue next year, that Obama has already demonstrated he's not choosing to fight this fight. They realize they have no leverage over him, his eyes now squarely focused on re-election.
The president essentially served principled ideologues on both sides a proverbial "crap sandwich," but unlike principled conservatives, principeld liberals actually have to eat it.
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Club for Growth on Tax Compromise: “No Deal”
Posted on Dec. 07, 10 | 03:13 PM by Michael Connolly | Topic: Taxes“This is bad policy, bad politics, and a bad deal for the American people,” said Club President Chris Chocola. “The plan would resurrect the Death Tax, grow government, blow a hole in the deficit with unpaid-for spending, and do so without providing the permanent relief and security our economy needs to finally start hiring and growing again.”
“Instead, Congress should pass a permanent extension of current rates, including a permanent repeal of the death tax, and drop all new spending,” Chocola said. “A month ago, the American people repudiated Washington big government. It’s time for both parties to finally hear that message and act on it.”
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Two Interesting House Votes
Posted on Dec. 03, 10 | 09:06 AM by Andrew Roth | Topic: TaxesFortunately, since the bill can't pass the Senate, Democrats will be forced to go back to the negotiation table with Republicans and ultimately relent on extending all of the tax cuts.
The House also voted yesterday to censure Charlie Rangel for his tax-related improprieties. The resolution passed 333-79. Two Republicans voted NO - Peter King (NY-03) and Don Young (AK-AL).
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Rep. Yarmuth: Small Business Can Handle a Tax Hike
Posted on Dec. 02, 10 | 04:27 PM by Andrew Roth | Topic: TaxesShould the White House and the GOP Compromise on the Tax Cut Extension?
Posted on Dec. 01, 10 | 08:54 AM by Andrew Roth | Topic: TaxesUSA, USA, USA -- We're #62?!?!?
Posted on Nov. 23, 10 | 04:00 PM by David Keating | Topic: TaxesIt's in the "ease of paying taxes" competition in a new study published by World Bank, the International Finance Corporation (IFC) and PwC. The ranking accounts for the difficulty of figuring out the tax, how many times you have to pay it and the total tax rate.
Our #62 ranking was pulled up by the #35 ranking for the number of payments. What pulled it down was the pathetic #124 ranking for the total tax rate.
Anyway you look at it, a very disappointing performance by Team USA, meaning the Congress and the president.
P.S. -- You've got to admire Brazil, which sets the dubious world record for complex tax rules. Compliance time for the studied business was a whopping 2,600 hours per year, over double the amount for Bolivia, the country in next to last place at 1,080 hours.
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