# Inheritance Tax **URL:** \ **Category:** Great Debates\ **Created:** [February 16, 2011, 12:40am UTC](https://boards.straightdope.com/t/inheritance-tax/571519 "2011-02-16T00:40:27Z")\ **Posts on this page:** 20\ **Page:** 2
**Author:** ![Rand\_Rover](https://avatars.discourse-cdn.com/v4/letter/r/db5fbb/32.png) [@Rand\_Rover](https://boards.straightdope.com/u/Rand_Rover)\ **Post date:** [February 17, 2011, 3:58am UTC](https://boards.straightdope.com/t/inheritance-tax/571519/21 "2011-02-17T03:58:29Z")
> [@curious11](#): > > Okay, so even with more people passing, the number of those with \>= 5 Mill is still too small to worry about. > > Thank You Let’s say I came up with a plan that resulted in utopia-like conditions in the US. The way to get there is to torture and kill 0.1% of the population. Are you on board with this plan? Why or why not? ---
**Author:** ![Lobohan](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lobohan/32/79_2.png) [@Lobohan](https://boards.straightdope.com/u/Lobohan)\ **Post date:** [February 17, 2011, 4:06am UTC](https://boards.straightdope.com/t/inheritance-tax/571519/22 "2011-02-17T04:06:24Z")
> [@Rand\_Rover](#): > > Let’s say I came up with a plan that resulted in utopia-like conditions in the US. The way to get there is to torture and kill 0.1% of the population. Are you on board with this plan? Why or why not? Let’s say I come up with a plan that resulted in utopia-like conditions in the US. The way to get there is to modestly tax inheritances of the very, very rich. Are you on board with this plan? Don’t you think your post was kind of silly? What is gained by posting inflammatory nonsense? Other than generating flames, that is? ---
**Author:** ![Euphonious\_Polemic](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/euphonious_polemic/32/3002_2.png) [@Euphonious\_Polemic](https://boards.straightdope.com/u/Euphonious_Polemic)\ **Post date:** [February 17, 2011, 4:11am UTC](https://boards.straightdope.com/t/inheritance-tax/571519/23 "2011-02-17T04:11:33Z")
“Torture and Kill” is not equivalent to “tax some portion of an estate” on this planet. Comparison fail. ---
**Author:** ![sqweels](https://avatars.discourse-cdn.com/v4/letter/s/f19dbf/32.png) [@sqweels](https://boards.straightdope.com/u/sqweels)\ **Post date:** [February 17, 2011, 4:30am UTC](https://boards.straightdope.com/t/inheritance-tax/571519/24 "2011-02-17T04:30:29Z")
> [@Rand\_Rover](#): > > Let’s say I came up with a plan that resulted in utopia-like conditions in the US. The way to get there is to torture and kill 0.1% of the population. Are you on board with this plan? Why or why not? Dude, how many people are conservatives ok with dying because they can’t afford health insurance? ---
**Author:** ![Lobohan](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lobohan/32/79_2.png) [@Lobohan](https://boards.straightdope.com/u/Lobohan)\ **Post date:** [February 17, 2011, 4:37am UTC](https://boards.straightdope.com/t/inheritance-tax/571519/25 "2011-02-17T04:37:12Z")
> [@sqweels](#): > > Dude, how many people are conservatives ok with dying because they can’t afford health insurance? How many you got? 😃 ---
**Author:** ![flickster](https://avatars.discourse-cdn.com/v4/letter/f/7bcc69/32.png) [@flickster](https://boards.straightdope.com/u/flickster)\ **Post date:** [February 17, 2011, 6:32am UTC](https://boards.straightdope.com/t/inheritance-tax/571519/26 "2011-02-17T06:32:35Z")
Don’t have to & don’t personally know anyone that would have to worry about the current limit. That said, what magic does having an estate over $5 mil create that someone having an estate of 4.8 mil. Why should they get slammed simply because the estate is over 5 mil? Now we all know that all this random number does is increase the income of a butt load of attorneys and accountants to make sure what wealth is reported doesn’t exceed that amount. So why bother? ---
**Author:** ![Der\_Trihs](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/der_trihs/32/233_2.png) [@Der\_Trihs](https://boards.straightdope.com/u/Der_Trihs)\ **Post date:** [February 17, 2011, 7:53am UTC](https://boards.straightdope.com/t/inheritance-tax/571519/27 "2011-02-17T07:53:35Z")
> [@flickster](#): > > That said, what magic does having an estate over $5 mil create that someone having an estate of 4.8 mil. Why should they get slammed simply because the estate is over 5 mil? The same reason that the law treats you different when you reach 18, because they have to pick a number. ---
**Author:** ![amarone](https://avatars.discourse-cdn.com/v4/letter/a/e0b2c6/32.png) [@amarone](https://boards.straightdope.com/u/amarone)\ **Post date:** [February 17, 2011, 12:33pm UTC](https://boards.straightdope.com/t/inheritance-tax/571519/28 "2011-02-17T12:33:02Z")
> [@flickster](#): > > That said, what magic does having an estate over $5 mil create that someone having an estate of 4.8 mil. Why should they get slammed simply because the estate is over 5 mil? Note that it is only the amount over $5m that is taxed - at 35% Hence you do not get “slammed” just by hitting $5m. An estate of $5.1m will pay $35,000 in tax, or 0.69% of the value of the estate. ---
**Author:** ![Dangerosa](https://avatars.discourse-cdn.com/v4/letter/d/22d042/32.png) [@Dangerosa](https://boards.straightdope.com/u/Dangerosa)\ **Post date:** [February 17, 2011, 1:31pm UTC](https://boards.straightdope.com/t/inheritance-tax/571519/29 "2011-02-17T13:31:48Z")
> [@Whack-a-Mole](#): > > According to [this article](http://www.huffingtonpost.com/2010/03/09/number-of-us-millionaires_n_491942.html) there were 980,000 people in the US with a net worth over $5 million in the US in 2009. > > There were approximately [305,500,000 people](http://www.usnews.com/opinion/articles/2008/12/31/us-population-2009-305-million-and-counting) in the US in 2009. > > A little math says that is 0.32% of the population who have over $5 million net worth. > > So not too far off from the OP. Considering that many will manage to hide income to avoid paying such a tax I can live with 0.24%. Although many people who have just slightly north of $5M will spend that down in their retirement - we should be there at retirement - and should be far below that when we die. Smart tax planning will have you distribute some of that as gifts below the reportable limit. There are some ways to shelter - insurance, setting up trusts or corporations, some other things. You can spend or give some away to charity if you would rather see it go there than to the government. ---
**Author:** ![EristicKallistic](https://avatars.discourse-cdn.com/v4/letter/e/85e7bf/32.png) [@EristicKallistic](https://boards.straightdope.com/u/EristicKallistic)\ **Post date:** [February 17, 2011, 3:24pm UTC](https://boards.straightdope.com/t/inheritance-tax/571519/30 "2011-02-17T15:24:20Z")
> [@Rand\_Rover](#): > > Let’s say I came up with a plan that resulted in utopia-like conditions in the US. The way to get there is to torture and kill 0.1% of the population. Are you on board with this plan? Why or why not? Only if I get to pick the 0.1% ---
**Author:** ![Bridget\_Burke](https://avatars.discourse-cdn.com/v4/letter/b/7cd45c/32.png) [@Bridget\_Burke](https://boards.straightdope.com/u/Bridget_Burke)\ **Post date:** [February 17, 2011, 3:40pm UTC](https://boards.straightdope.com/t/inheritance-tax/571519/31 "2011-02-17T15:40:27Z")
> [@EristicKallistic](#): > > Only if I get to pick the 0.1% Can we start a list? ---
**Author:** ![Really\_Not\_All\_That\_Bright](https://avatars.discourse-cdn.com/v4/letter/r/e8c25b/32.png) [@Really\_Not\_All\_That\_Bright](https://boards.straightdope.com/u/Really_Not_All_That_Bright)\ **Post date:** [February 17, 2011, 3:45pm UTC](https://boards.straightdope.com/t/inheritance-tax/571519/32 "2011-02-17T15:45:07Z")
> [@flickster](#): > > That said, what magic does having an estate over $5 mil create that someone having an estate of 4.8 mil. Why should they get slammed simply because the estate is over 5 mil? Good question. We should start applying the estate tax to everyone. ---
**Author:** ![Steve\_MB](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/steve_mb/32/5339_2.png) [@Steve\_MB](https://boards.straightdope.com/u/Steve_MB)\ **Post date:** [February 17, 2011, 3:58pm UTC](https://boards.straightdope.com/t/inheritance-tax/571519/33 "2011-02-17T15:58:43Z")
> [@sqweels](#): > > Dude, how many people are conservatives ok with dying because they can’t afford health insurance? Let them be quick about it, and decrease the surplus population. ---
**Author:** ![Steve\_MB](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/steve_mb/32/5339_2.png) [@Steve\_MB](https://boards.straightdope.com/u/Steve_MB)\ **Post date:** [February 17, 2011, 3:59pm UTC](https://boards.straightdope.com/t/inheritance-tax/571519/34 "2011-02-17T15:59:58Z")
> [@Really\_Not\_All\_That\_Bright](#): > > Good question. We should start applying the estate tax to everyone. That idea makes no sense, inasmuch as the underlying purpose of the estate tax is not simply to garner revenue but rather to act as a brake on the tendency of wealth to become concentrated into a closed circle. ---
**Author:** ![Really\_Not\_All\_That\_Bright](https://avatars.discourse-cdn.com/v4/letter/r/e8c25b/32.png) [@Really\_Not\_All\_That\_Bright](https://boards.straightdope.com/u/Really_Not_All_That_Bright)\ **Post date:** [February 17, 2011, 4:20pm UTC](https://boards.straightdope.com/t/inheritance-tax/571519/35 "2011-02-17T16:20:36Z")
35% of a few million is a lot more than 35% of a house in the sticks. I was being facetious, though. ---
**Author:** ![gonzomax](https://avatars.discourse-cdn.com/v4/letter/g/e8c25b/32.png) [@gonzomax](https://boards.straightdope.com/u/gonzomax)\ **Post date:** [February 17, 2011, 4:33pm UTC](https://boards.straightdope.com/t/inheritance-tax/571519/36 "2011-02-17T16:33:16Z")
> **[And the rich get richer](https://www.latimes.com/archives/la-xpm-2010-dec-18-la-oe-1218-rutten-20101218-story.html)** > > And the rich get richer A rich republican, Teddy Roosevelt, warned us of the dangers of accumulated wealth in America. His point was that just due to size ,a huge fortune is different than just money. It has characteristics that give it special qualities like political power, access to politicians and open access to media. It is not about money but the inherent danger to the system itself. He suggested a graduated income tax and a graduated inheritance tax. His fears have proven to be prophetic. Our government has been taken over by the super rich and it serves them quite well. ---
**Author:** ![SmartAlecCat](https://avatars.discourse-cdn.com/v4/letter/s/67e7ee/32.png) [@SmartAlecCat](https://boards.straightdope.com/u/SmartAlecCat)\ **Post date:** [February 17, 2011, 4:38pm UTC](https://boards.straightdope.com/t/inheritance-tax/571519/37 "2011-02-17T16:38:21Z")
Remove all death/inheritance tax. Just add any transfer of money between people the same way. If I hire you and pay you, it is income to you. If I die and will money to you, it is income to you. Treat it all the same way. If it is a really big sum, or a business, farm, etc. make a trust/corporation/whatever to hold the money and dole it out over time, but once it moves into a person’s pockets, tax it all the same way. ---
**Author:** ![Lobohan](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lobohan/32/79_2.png) [@Lobohan](https://boards.straightdope.com/u/Lobohan)\ **Post date:** [February 17, 2011, 4:44pm UTC](https://boards.straightdope.com/t/inheritance-tax/571519/38 "2011-02-17T16:44:28Z")
> [@SmartAlecCat](#): > > Remove all death/inheritance tax. Just add any transfer of money between people the same way. If I hire you and pay you, it is income to you. If I die and will money to you, it is income to you. Treat it all the same way. > If it is a really big sum, or a business, farm, etc. make a trust/corporation/whatever to hold the money and dole it out over time, but once it moves into a person’s pockets, tax it all the same way. That’s way more strict than the current rules. Republicans would shit angry bees if your idea came to pass. I’m all for it. 😃 ETA: Of course the down side would be people couldn’t get willed family homes. The 5 million cap is there so that a small business or a farm can go to the kids without the kids suddenly owing outrageous taxes on it. ---
**Author:** ![SmartAlecCat](https://avatars.discourse-cdn.com/v4/letter/s/67e7ee/32.png) [@SmartAlecCat](https://boards.straightdope.com/u/SmartAlecCat)\ **Post date:** [February 17, 2011, 4:54pm UTC](https://boards.straightdope.com/t/inheritance-tax/571519/39 "2011-02-17T16:54:54Z")
Make a special “inheritance trust” that can hold property/farms/businesses etc. You can live in the house (even pass that “house trust” to your heirs). You only owe taxes if you sell the farm or business and the cash hits your pockets. ---
**Author:** ![Euphonious\_Polemic](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/euphonious_polemic/32/3002_2.png) [@Euphonious\_Polemic](https://boards.straightdope.com/u/Euphonious_Polemic)\ **Post date:** [February 17, 2011, 5:07pm UTC](https://boards.straightdope.com/t/inheritance-tax/571519/40 "2011-02-17T17:07:25Z")
> [@Lobohan](#): > > Republicans would shit angry bees if your idea came to pass. This made me laugh a lot. I want to see a cartoon of this now. [Previous page](https://boards.straightdope.com/t/inheritance-tax/571519.md?page=1) [Next page](https://boards.straightdope.com/t/inheritance-tax/571519.md?page=3)