I think LLC’s are exempt from the new estate tax laws embedded in trump’s tax reform. While my kids will benefit greatly from the new estate planning laws, they will exacerbate the income inequality that everyone is complaining about.
Why is double taxiation wrong? You get taxed on your income and then pay sales tax on purchases you make. There are two transactions. Not dissimilar to inheritances.
GOP only is focused on the Estate Tax on people above $22 million as per the story.... seems to be a fuck eveyrone else...
LLCs are pass through entities. The individuals are the ones who get all the tax and so if you have a small business and a family one at that and one person dies with a large share of the LLC, that is all part of the estate. That is why ownerships are transferred into different types of trusts (grantor, irrevocable etc.).
I'm not sure, but I believe that llc's can now be passed through without being subject to estate tax even though they are pass through entities for the purposes of the IRS.
No my point is LLCs are pass through entities but are often used for ownership of small business. Assume you have an LLC with a valuation of $6 million. If the owner dies then the estate includes that valuation because it is passed through to the individual. So estate taxes should be looked at to see the effect on small businesses and GOP should not just focus on those $22 million and up wealthy estates where wealth is just passed on without any need to earn it. From experience, people start transferring ownership interests within expemptions so that for estate planning they can avoid estate taxes. You have an LLC worth millions with worth tied up in assets and inventory and Uncle Sam wants $1.5 million in cash. You have to find it somewhere and that puts a burden on those small businesses. I say if GOP really cares about it then stop worrying about the mega rich and focus on small businesses in pass through ownership entities where the death of a large member % leads to the tax unless planned for.
Huh?? The estate tax reduces the max tax rate of anyone below $22 million (couples). Not above. What kind of crazy tax policy would be to protect people above $22 million?
That's not even remotely the same thing. You get taxed on your income, then the price of an object you wish to purchase is increased with a sales tax. That isn't double taxation! If I work all my life and pay taxes and then leave my money - which is already the net income of my hard work - to my family, the government shouldn't have the right to come in and tax all that income all over again.
Or: You work and pay income taxes and take your money and give it to a store for a product or to you give it to your kids so they can be unproductive derelicts. What’s the difference? You might be against double taxiation because you want lower taxes but double taxiation isn’t inherently wrong.
Who are you to say what someone will do with the money they inherit? They can invest it into the economy. Start a company. Give it to charity. Or they can be unproductive idiots. You or the government has no right to say otherwise. Right and wrong don't work here, and I never said it was inherently wrong. This is a difference of opinion. You want the government to control more of our lives and tax us more - presumably to redistribute the wealth to people who will certainly run the risk of being unproductive idiots. I want less of both.