With a slew of new taxes scheduled for implementation in 2013, including Obamacare taxes, and with the 12/31/12 expiration of the Bush tax cuts that will indeed have a profoundly devastating effect on the middle class, small business and the economy, 2013 is destined to herald in more government planned gloom, doom and misery.
But of all the draconian measures to plunder the American people, none is more permanently confiscatory than the estate tax because it constitutes an outright expropriation of small family businesses.
The Bush tax cuts had a $5 million dollar exemption on the estate tax before an estate tax rate of 35% kicked in. When the Bush tax cuts expire, the floor for the estate tax drops to $1 million and the tax rate jumps to 55%. The estate tax will have a devastating impact on small family businesses who simply don't have the cash to pay the tax.
What does this mean?
Are New Inheritance Tax Laws Really Aimed At The Rich? Or Is The Average Joe Getting Caught In The Cross Fire?
What Are The New Inheritance Taxes Going To Be?
Currently, there is a $5 million estate tax exemption, and only those who stand to inherit an estate that exceeds that amount have to pay a tax rate of 35%. In January, 2013, many liberals have been celebrating what they consider to be a fair tax on the rich person. What they don’t realize is that the$ 1 million exemption and 55% taxation for those whose estate exceeds 1 million, will affect many Americans who could hardly be considered as wealthy. In this day and age, it doesn’t take much for an estate to add up to a million dollars. If you consider house, 401(k), savings, and other investments and assets, many people will fall into the new tax category.
What Will Happen To The Average Small Farmer When The New Inheritance Tax Is Imposed
97% of farms, small ranches, and small businesses will be affected by this tax. The problem is, the recipients of the inheritance are small-time people who barely make enough each year to scrape by. Individuals like this will have no option but to come up with the 55% tax to give to Uncle Sam, or they will be forced to sell the family farm or business that has been in the family for generations. Most farmers don’t just have $500k just sitting around as a tax fee for a property worth 1 million dollars.
The new inheritance tax could represent the end of an era. The death of the “family farm” as we know it to be today. Even if you are not a farmer or a business owner, your inheritance may be at stake.
Welcome to the New America where toiling to earn money to feed your family is verboten and if you dare have the blazing audacity to even attempt it, the government confiscators will be there to crush you.