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Family owned businesses now will give half to the gov't upon death of the founder?
Comments
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Except the White House has already said it’s going to exempt family owned businesses and farmers who continue to run the business.greenblood said:
Obviously you failed economics, because you lack little to no understanding of how a business operates. Say Dad passes away from his manufacturing company, and said company is now valued minus liabilities at roughly $6.5 million dollars. If dad founded said company, then you are looking at a capital return of $6.5 million in value. If you tax 50%, that creates a tax bill of $3.25 million. Do you think the business has reserves in place for that kind of bill? So what can the kid's do? Sell the business, or liquidate a large portion of the company's assets (machines, supplies, inventory) to cover the cost. In essence, the government takes a soundly ran family owned business, and turns it into a shell of it's former self. More often enough liquidating the business into bankruptcy or forcing a quick sell to a conglomerate. Which then restricts competitions, and helps create an oligopoly in even more segments of the economy. Great thought process genius. Now I can see why you hate standardized testing so much.TheKobeStopper said:
Ironic considering the subject of the thread.greenblood said:
Have you ever made your own money, or have you always lived off others?TheKobeStopper said:
People who own businesses, worth millions, are not middle class.DerekJohnson said:
I think it's the ongoing assault on the middle classdoogie said:This has to be from he Life Insurance Lobby.
Who cares? That clearly has no value. If it did, you guys wouldn’t be sobbing over exactly how much the children of millionaires should inherit. -
Trust the coaches
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That’s an interesting way to frame “discussing what a proposal proposes”. But I’ve been brainwashed by the marxists, so what do I know.RaceBannon said:Trust the coaches
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buy/sell agreement funded with Life Insurance.greenblood said:
Obviously you failed economics, because you lack little to no understanding of how a business operates. Say Dad passes away from his manufacturing company, and said company is now valued minus liabilities at roughly $6.5 million dollars. If dad founded said company, then you are looking at a capital return of $6.5 million in value. If you tax 50%, that creates a tax bill of $3.25 million. Do you think the business has reserves in place for that kind of bill? So what can the kid's do? Sell the business, or liquidate a large portion of the company's assets (machines, supplies, inventory) to cover the cost. In essence, the government takes a soundly ran family owned business, and turns it into a shell of it's former self. More often enough liquidating the business into bankruptcy or forcing a quick sell to a conglomerate. Which then restricts competitions, and helps create an oligopoly in even more segments of the economy. Great thought process genius. Now I can see why you hate standardized testing so much.TheKobeStopper said:
Ironic considering the subject of the thread.greenblood said:
Have you ever made your own money, or have you always lived off others?TheKobeStopper said:
People who own businesses, worth millions, are not middle class.DerekJohnson said:
I think it's the ongoing assault on the middle classdoogie said:This has to be from he Life Insurance Lobby.
Who cares? That clearly has no value. If it did, you guys wouldn’t be sobbing over exactly how much the children of millionaires should inherit.
Done.
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I make interesting postsTheKobeStopper said:
That’s an interesting way to frame “discussing what a proposal proposes”. But I’ve been brainwashed by the marxists, so what do I know.RaceBannon said:Trust the coaches
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How much is a $3.25 million dollar policy? Not very cheap. Especially if the dad has prior or current health issues.doogie said:
buy/sell agreement funded with Life Insurance.greenblood said:
Obviously you failed economics, because you lack little to no understanding of how a business operates. Say Dad passes away from his manufacturing company, and said company is now valued minus liabilities at roughly $6.5 million dollars. If dad founded said company, then you are looking at a capital return of $6.5 million in value. If you tax 50%, that creates a tax bill of $3.25 million. Do you think the business has reserves in place for that kind of bill? So what can the kid's do? Sell the business, or liquidate a large portion of the company's assets (machines, supplies, inventory) to cover the cost. In essence, the government takes a soundly ran family owned business, and turns it into a shell of it's former self. More often enough liquidating the business into bankruptcy or forcing a quick sell to a conglomerate. Which then restricts competitions, and helps create an oligopoly in even more segments of the economy. Great thought process genius. Now I can see why you hate standardized testing so much.TheKobeStopper said:
Ironic considering the subject of the thread.greenblood said:
Have you ever made your own money, or have you always lived off others?TheKobeStopper said:
People who own businesses, worth millions, are not middle class.DerekJohnson said:
I think it's the ongoing assault on the middle classdoogie said:This has to be from he Life Insurance Lobby.
Who cares? That clearly has no value. If it did, you guys wouldn’t be sobbing over exactly how much the children of millionaires should inherit.
Done.
We have a record percentage of the US population not paying taxes this year. Instead of getting these waste of space shitbags back to work, the government decides to double tax hardworking families. Seems like a bold strategy. -
The Kobes of the world, who want to turn everything into a commune, aside, I think most agree that this is a shitty scenario that we should structure any estate tax law to avoid.greenblood said:
Obviously you failed economics, because you lack little to no understanding of how a business operates. Say Dad passes away from his manufacturing company, and said company is now valued minus liabilities at roughly $6.5 million dollars. If dad founded said company, then you are looking at a capital return of $6.5 million in value. If you tax 50%, that creates a tax bill of $3.25 million. Do you think the business has reserves in place for that kind of bill? So what can the kid's do? Sell the business, or liquidate a large portion of the company's assets (machines, supplies, inventory) to cover the cost. In essence, the government takes a soundly ran family owned business, and turns it into a shell of it's former self. More often enough liquidating the business into bankruptcy or forcing a quick sell to a conglomerate. Which then restricts competitions, and helps create an oligopoly in even more segments of the economy. Great thought process genius. Now I can see why you hate standardized testing so much.TheKobeStopper said:
Ironic considering the subject of the thread.greenblood said:
Have you ever made your own money, or have you always lived off others?TheKobeStopper said:
People who own businesses, worth millions, are not middle class.DerekJohnson said:
I think it's the ongoing assault on the middle classdoogie said:This has to be from he Life Insurance Lobby.
Who cares? That clearly has no value. If it did, you guys wouldn’t be sobbing over exactly how much the children of millionaires should inherit.
And as far as I know most succession and estate planning lawyers are able to navigate and avoid this outcome through any number of trusts or special partnership arrangements. How often do we? actually see businesses liquidating in order to meet an estate tax burden? -
They could just saddle themselves with debt to pay the tax burden as well. Don’t see that as a great option either.GreenRiverGatorz said:
The Kobes of the world, who want to turn everything into a commune, aside, I think most agree that this is a shitty scenario that we should structure any estate tax law to avoid.greenblood said:
Obviously you failed economics, because you lack little to no understanding of how a business operates. Say Dad passes away from his manufacturing company, and said company is now valued minus liabilities at roughly $6.5 million dollars. If dad founded said company, then you are looking at a capital return of $6.5 million in value. If you tax 50%, that creates a tax bill of $3.25 million. Do you think the business has reserves in place for that kind of bill? So what can the kid's do? Sell the business, or liquidate a large portion of the company's assets (machines, supplies, inventory) to cover the cost. In essence, the government takes a soundly ran family owned business, and turns it into a shell of it's former self. More often enough liquidating the business into bankruptcy or forcing a quick sell to a conglomerate. Which then restricts competitions, and helps create an oligopoly in even more segments of the economy. Great thought process genius. Now I can see why you hate standardized testing so much.TheKobeStopper said:
Ironic considering the subject of the thread.greenblood said:
Have you ever made your own money, or have you always lived off others?TheKobeStopper said:
People who own businesses, worth millions, are not middle class.DerekJohnson said:
I think it's the ongoing assault on the middle classdoogie said:This has to be from he Life Insurance Lobby.
Who cares? That clearly has no value. If it did, you guys wouldn’t be sobbing over exactly how much the children of millionaires should inherit.
And as far as I know most succession and estate planning lawyers are able to navigate and avoid this outcome through any number of trusts or special partnership arrangements. How often do we? actually see businesses liquidating in order to meet an estate tax burden? -
I guess, but the point is that there are a lot of avenues for relief that are utilized on a wide scale, specifically to avoid the scenario you outlined. Avenues that are perfectly legitimate costs of doing business and don't involve debt.greenblood said:
They could just saddle themselves with debt to pay the tax burden as well. Don’t see that as a great option either.GreenRiverGatorz said:
The Kobes of the world, who want to turn everything into a commune, aside, I think most agree that this is a shitty scenario that we should structure any estate tax law to avoid.greenblood said:
Obviously you failed economics, because you lack little to no understanding of how a business operates. Say Dad passes away from his manufacturing company, and said company is now valued minus liabilities at roughly $6.5 million dollars. If dad founded said company, then you are looking at a capital return of $6.5 million in value. If you tax 50%, that creates a tax bill of $3.25 million. Do you think the business has reserves in place for that kind of bill? So what can the kid's do? Sell the business, or liquidate a large portion of the company's assets (machines, supplies, inventory) to cover the cost. In essence, the government takes a soundly ran family owned business, and turns it into a shell of it's former self. More often enough liquidating the business into bankruptcy or forcing a quick sell to a conglomerate. Which then restricts competitions, and helps create an oligopoly in even more segments of the economy. Great thought process genius. Now I can see why you hate standardized testing so much.TheKobeStopper said:
Ironic considering the subject of the thread.greenblood said:
Have you ever made your own money, or have you always lived off others?TheKobeStopper said:
People who own businesses, worth millions, are not middle class.DerekJohnson said:
I think it's the ongoing assault on the middle classdoogie said:This has to be from he Life Insurance Lobby.
Who cares? That clearly has no value. If it did, you guys wouldn’t be sobbing over exactly how much the children of millionaires should inherit.
And as far as I know most succession and estate planning lawyers are able to navigate and avoid this outcome through any number of trusts or special partnership arrangements. How often do we? actually see businesses liquidating in order to meet an estate tax burden?
That's why I'm questioning just how salient your scenario is. It sounds bad, but it's not in the spirit of the estate tax that people advocate for, and in practice I'm not convinced that this is actually occurring at a level we should be concerned about. -
I just want people to have healthcare, man.GreenRiverGatorz said:
The Kobes of the world, who want to turn everything into a commune, aside, I think most agree that this is a shitty scenario that we should structure any estate tax law to avoid.greenblood said:
Obviously you failed economics, because you lack little to no understanding of how a business operates. Say Dad passes away from his manufacturing company, and said company is now valued minus liabilities at roughly $6.5 million dollars. If dad founded said company, then you are looking at a capital return of $6.5 million in value. If you tax 50%, that creates a tax bill of $3.25 million. Do you think the business has reserves in place for that kind of bill? So what can the kid's do? Sell the business, or liquidate a large portion of the company's assets (machines, supplies, inventory) to cover the cost. In essence, the government takes a soundly ran family owned business, and turns it into a shell of it's former self. More often enough liquidating the business into bankruptcy or forcing a quick sell to a conglomerate. Which then restricts competitions, and helps create an oligopoly in even more segments of the economy. Great thought process genius. Now I can see why you hate standardized testing so much.TheKobeStopper said:
Ironic considering the subject of the thread.greenblood said:
Have you ever made your own money, or have you always lived off others?TheKobeStopper said:
People who own businesses, worth millions, are not middle class.DerekJohnson said:
I think it's the ongoing assault on the middle classdoogie said:This has to be from he Life Insurance Lobby.
Who cares? That clearly has no value. If it did, you guys wouldn’t be sobbing over exactly how much the children of millionaires should inherit.
And as far as I know most succession and estate planning lawyers are able to navigate and avoid this outcome through any number of trusts or special partnership arrangements. How often do we? actually see businesses liquidating in order to meet an estate tax burden?
