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Buffett/Soros Effort to Raise Taxes on Estates 526,421 family farms threatened
#1
http://www.bloomberg.com/news/2012-12-11...tates.html

Buffett Joins Soros in Effort to Raise Taxes on Estates
By Richard Rubin - 2012-12-11T20:35:03Z

Billionaire investors Warren Buffett and George Soros are calling on Congress to increase the estate tax as lawmakers near a decision on tax policies that expire Dec. 31.

In a joint statement today, Buffett, Soros and more than 20 other wealthy individuals asked Congress to lower the estate tax’s per-person exemption to $2 million from $5.12 million and raise the top rate to more than 45 percent from 35 percent.

An estate tax structured this way will “raise significant revenue to reduce the deficit and fund vital services, will only be paid by the top one percent of estates, will raise more from the wealthiest estates” and will simplify compliance, said the statement. It also was signed by John Bogle, founder of mutual fund company Vanguard Group Inc., and former President Jimmy Carter.

The renewed push for increasing the estate tax faces significant opposition in Congress, where Senate Democrats including Max Baucus of Montana and Mark Pryor of Arkansas have joined Republicans to support the current estate tax parameters. That intra-party dispute caused Democrats to leave estate tax changes out of legislation they passed July 25 extending income tax cuts.

There’s probably enough support among Democrats to maintain the existing estate tax parameters, said Carolyn Lee, senior director of tax policy at the National Association of Manufacturers in Washington, which supports existing levels.
‘Multigenerational Businesses’

“We think that family-held and multigenerational businesses are important,” she said. “It’s part of the American way of life.”

Changes to the estate tax are among the more than $600 billion in automatic spending cuts and tax increases scheduled to start in January.

If Congress does nothing, the amount one could exempt from the estate tax would drop to $1 million and the rate would increase to 55 percent. Obama wants to reinstate the 2009 levels, which include a $3.5 million exemption and a 45 percent top rate. Compared with continuing current policies, Obama’s plan would raise $119 billion over the next decade, according to his budget proposal.

Cutting estate taxes just means that someone else will have to pay for government, Bogle said.

“I’m more than happy for my own estate to pay my fair share,” he said today on a conference call with reporters.
Taxable Estates

In 2013, under the plan favored by Republicans, there would be an estimated 3,600 taxable estates in the U.S., according to the nonpartisan congressional Joint Committee on Taxation. Obama’s plan would double that number to 7,200. If Congress does nothing, 55,200 estates, or 2 percent of estimated 2013 decedents, would owe taxes.

http://washingtonexaminer.com/632281-fam...MeRqKViZjY

New legislation that jumps the death tax to 55 percent of estates exceeding $1 million threatens 526,421 family farms, of about 25 percent of all farms in America, according to a Senate analysis.

According to the analysis from the Senate Republican Policy Committee, chaired by Wyoming's John Barrasso:

If President Obama and Senate Democrats do not act, the federal government will begin taking more than half the value of family farm estates exceeding $1 million beginning next year. This summer, Majority Leader Harry Reid and Senate Democrats passed legislation (S.3412) on a party-line vote that allows Washington to take up to 55 percent, a huge increase over today's top rate of 35 percent, and drop the tax's exemption from $5.1 million to $1 million. The lower exemption -- combined with soaring farm real estate values -- could put more than 420,000 additional farm estates at risk from the death tax.

Farm values are largely tied up in non-liquid assets like land, buildings, and livestock. Many farm and ranch families would be forced to sell their assets to satisfy Washington Democrats' insatiable appetite for tax money. Up to 24 percent of America's farm and ranch families could be forced to hand over a large chunk of their heritage to the Internal Revenue Service when a family member dies. This would economically devastate rural communities. The President and Senate Democrats should join Republicans in rejecting this irresponsible policy.
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#2
Makes sense to me, they force more estates into receivership and thus have the opportunity to pick up more properties nation wide. No one actually believes that they think that this is for the betterment of the country, do they?
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#3
If anybody wants to know what these two guys really think just look at how they handle their money. Talk is cheap so Do as they do Not as they say.
Dave, proudly annoying members of pa2a.org since Sep 2012.
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#4
billamj;52022 Wrote:Makes sense to me, they force more estates into receivership and thus have the opportunity to pick up more properties nation wide. No one actually believes that they think that this is for the betterment of the country, do they?

Buffett, Soros, and Obama are smart enough to know that this is the true effect of an estate tax but they also know that most American citizens are not smart enough to understand. All the average dimwit sees is the "rich guys" getting what they deserve.
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#5
I didnt know that farming was that profitable. Are they the rich that need to pay their fair share? (all sarcasm)
das, proud to be a member of pa2a.org since Sep 2012.
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#6
Farming can be profitable, however the problem is that most farmers are cash poor but land rich. Couple that with family farms generally being owned & run by older people--since many of their kids went to college or elsewhere to do other things--who upon their passing will result in 55% less farmland to pass to the children who want to farm, and who were planning to take it over, as much of the land will need to be sold in order to pay the death tax.

Corporate farms won't be affected, and more and more you're seeing corporate farms instead of your more traditional ones.
Vampire pig man since September 2012
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#7
Camper;52108 Wrote:Farming can be profitable, however the problem is that most farmers are cash poor but land rich. Couple that with family farms generally being owned & run by older people--since many of their kids went to college or elsewhere to do other things--who upon their passing will result in 55% less farmland to pass to the children who want to farm, and who were planning to take it over, as much of the land will need to be sold in order to pay the death tax.

Corporate farms won't be affected, and more and more you're seeing corporate farms instead of your more traditional ones.


Even equipment alone can make up a big part of the "monetary value". Some tractors, harvesters, and the like can cost tens, if not hundreds of thousands of dollars.

When I was still selling cars, myself and one of the lot boys took two new trucks out to a farm. It was a gift for a guys wife, she got to pick which one she wanted. He was showing off some machine that did god knows what. Over $130k just for that machine alone.
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#8
Connal;52116 Wrote:Even equipment alone can make up a big part of the "monetary value". Some tractors, harvesters, and the like can cost tens, if not hundreds of thousands of dollars.

When I was still selling cars, myself and one of the lot boys took two new trucks out to a farm. It was a gift for a guys wife, she got to pick which one she wanted. He was showing off some machine that did god knows what. Over $130k just for that machine alone.

Know a farmer whose combine alone...used for 15 years...still has a value of over 80k.
Vampire pig man since September 2012
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#9
Camper;52108 Wrote:Farming can be profitable, however the problem is that most farmers are cash poor but land rich. Couple that with family farms generally being owned & run by older people--since many of their kids went to college or elsewhere to do other things--who upon their passing will result in 55% less farmland to pass to the children who want to farm, and who were planning to take it over, as much of the land will need to be sold in order to pay the death tax.

Corporate farms won't be affected, and more and more you're seeing corporate farms instead of your more traditional ones.

That will cause the cost of food to double. Or triple.
Cost of food is already outrageous. I just paid $16 on an economy pack (9) pork chops.
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#10
kadar;52122 Wrote:That will cause the cost of food to double. Or triple.
Cost of food is already outrageous. I just paid $16 on an economy pack (9) pork chops.

A lot of that is due to the drought out west, and the lack of feed. Not sure if that's stabilized yet, but I heard that meat (beef, pork, chicken, etc) was going to get cheap and then jump up high after the slaughter-fest was over. (cheaper to slaughter than breed & feed)

Everything is getting more expensive as it comes to food.
Vampire pig man since September 2012
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