I run this video for two reasons. The first is that this is probably an example of the kind of citizen journalism we are going to see more and more of. The second is that the single point being made is valid but has never been so emphasized by the mainstream media which should hound Kennedy over things like this instead of coddling him and the rest of the politicos.
And, I should mention, all the hyper-rich Democrats I know also manage such tax avoidance.
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#57 bobbo
“I’ve been in mentoring status with “j” and drinking beer at the same time”
Oh please! You are getting bitch slapped by me and are dizzy from the smacking.
#48,
1. You should be able to do whatever you want with your own money, and it should only be taxed once.
Sure, things like hiring a hit man or buying a nuclear missile or making your own anthrax. After all, it is YOUR money.
2. Kids really shouldn’t be able to be rich just because their parents are – that breeds useless people, like Paris Hilton.
Especially if it is your child and you want to do what you want with your money other than make anthrax.
Ted Kennedy is a murderer who got off.
Yup. The same ole troll argument. How could he have “got off” if he was never charged? Do you know something the Sheriff, Prosecutor, or State Attorney General doesn’t know?
Just something for all you mighty nimrods.
Kennedy has no idea what is happening with his money. His personal estate is held in a blind trust and managed for him. All politicians do this to avoid conflicts of interest. The chances are good he has no clue of what stocks he even owns. Accusing him of hypocrisy stretches the imagination.
To all you folks who think the inheritance tax barely affects regular folks, here is what it did to me and my 2 brothers.
My father worked for 40 years and did well in the stock market and when he died left $5M in a traditional IRA to my mom. (This is not going to be an uncommon happening with folks now using 401Ks and IRAs to save the bulk of their money in.)
Mom died unexpectedly while in the very beginning stages of making some sort of estate plan. (She was looking at buying very expensive life insurance policies to pay estate tax, apparently one of the few options available to single folks with large IRAs). Her only other asset was her home and some land her father left her.
The estate exemption when she died was $2M, and her total estate with home was about $5.5M, so the estated owed 45% tax on $3.5M or about $1.6M.
Since the only liquid assets was in the IRA (estate tax is due 9 months after date of death), the only way to get the money was to cash out some of the IRA and take the income tax hit, so instead of withdrawing $1.6M, we had to take out around $2.2 million to cover Fed and State taxes, and pay lawyers. (Yes, the feds get to tax the money TWICE in the case of large IRAs and 401Ks).
The bottom line was that the $5M IRA turned into 2.8M split 3 ways in an inherited IRA distributed over our lifetimes, or about $25,000/yr. Its nice and all, but we aren’t rich unless we cash out all the money and take the income tax hit.
The government got over $2M, the lawyers got $50,000, and each brother got $25K/yr. It’s nice, but we sure as hell aren’t rich.
This is what the estate tax is really all about, and it sucks. The estate tax is a gotcha tax. It hits those who didn’t think to plan, or didn’t know the implications of the tax. Our mother didn’t realize that soon enough.
Why does the government deserve peoples money upon their death? Why shouldn’t the deceased make that decision? They can give it to charity, or to the government, or their kids. It should be their choice.
When will the people tell the government to make do with LESS? With government its always MORE, MORE, MORE.
I think it is a matter of perspective. Where I come from and how much I make for a living if you have $2 million in savings you are rich.
63. Mr Catbowelmovement. It’s about time somebody stood up for Dick Cheney.
RBG
#64–George==tax planning is important and failure to do so can certainly disadvantage one.
You “almost” have it though. Try to focus on what you DO HAVE instead of what you don’t have. Life goes down easier that way===and stop crapping on those less well off, makes you look like a self centered jerk.
#64 George – good story and sorry for your loss.
#67 – “Try to focus on what you DO HAVE instead of what you don’t have. Life goes down easier that way”
Yes, stop whining about rights you no longer have and focus on what rights you do have. Bush’s policies will go down easier that way. 🙂