Inheritances are only taxable if they are way big. Didn’t you follow the death tax nonsense?
Now, once you get the inheritance, money from it like interest and dividends is taxable.
No, they never are, but the estate may have to pay taxes.
Yes, income from the inheritance is taxable.
The estate paying it does not mean it is not taxable - just who pays the tax.
But after you get the inheritance it is yours, and it seems odd to say that the inheritance is taxable. Income from that and all your other investments not IRAs and the like is taxable.
It’s not like I keep my inheritance from my father and my wife’s from her father in a different bucket.
Now, if RivkahChaya get so much investment income from the inheritance that she gets bumped, I’m not crying for her.
And you can get screwed by bumps in income. The first year I was on Medicare I paid more because I had some investment income two years before. I survived.
anyway, this is all spec, since my bet is that no one gets a dime. The Dems & the GOP wont agree.
There are a lot of misconceptions here. Inherited money from certain accounts is often taxable, such as non Roth pensions, just as they would be if cashed out by the original owner. You can sometimes avoid it by rolling into an IRA, but that’s not always the case.
What is true is that any debt held by the decedent is pass through to the estate, but inheritors are not responsible for remaining debt.
This is all separate from any tax on the entire value of large estates.
I’m still thinking about a proposal from an economist I heard today on NPR: a sales tax holiday, lasting months. The Feds pay states and localities the sales tax, the buyer pays none. If you want your subsidy, spend money. Benefits everyone who spends, and gooses demand for goods, which stimulates all sizes of businesses.
Sounds good in theory but I’m not sure shoppers pay that much attention to the sales tax to begin with. They are not likely to sense this psychological boost, “My grocery bill, which would have been $77, is now only $72, go spend!”
Well,
a) The working poor spend all their money, so having (in my county) 8.25% more of it to spend is pretty compelling I’d say.
b) Anyone buying something more expensive, say a $500 TV, will save $41 if they buy it before the tax holiday expires, which is a reasonably compelling reason to go get one sooner than later.
c) Local businesses would get some uptake from both these cases (the poor spend 8.25% more, the less poor buy more goods than they would in the next (say) 90 days).
d) Local governments get moderate stimulus from b and c.
Again, I’m not sold on this, but it’s an interesting notion.
Not all states have sales tax.
Almost all states without state sales taxes have local (county, municipality) sales taxes. Local sales taxes can exceed state sales taxes. The only states without either state or local sales taxes are Delaware, Montana, New Hampshire and Oregon. Cite, see chart on page 4 (pdf). Obviously this stimulus would need to be balanced with other stimulus measures.
Yup. I live in Oregon.
I agree with all your math. I just doubt that most American shoppers do the math.
Well, is the goal to boost consumer sentiment, or to pump money into the economy? The former seems nigh impossible in this climate, but a sales tax holiday would pump money into the economy using an existing mechanism that requires little overhead from states and localities and would put money in everyone’s pocket in one way or another in a progressive fashion pretty much immediately, and boost local governments. It’s not ideal (as susan points out), but the simplicity is striking.
I believe this is the third attempted coronavirus legislation (the first two passed), but perhaps I’ve lost count.
Not exactly. But if you’re really broke, and you’re in the grocery trying to figure out whether you can buy x, which you could really use, but you’ve already got $71 worth in your cart; and you count your money and find $77 in your wallet instead of $72, that makes a difference to whether you buy x.
Thank you, my thought exactly. People are laid off, they aren’t paying payroll taxes. They need help to keep their families afloat.
So the White House and Senate have apparently agreed on a $2 trillion bill. What are the figures on the direct payouts to Americans? I’m about to sleep, would appreciate anyone who can find the details.
Also something about injecting $6 trillion in liquidity, What’s that about?
From CNN:
I’m assuming this is based on gross income and not IRS adjusted income? If anyone finds an on-line calculator or table that shows the phase-down, please post a link. TIA.
CNN says don’t expect a check until May at the earliest, based on the rollout time for past stimulus checks. So much for Mnuchin’s 2 weeks.