OK - so the last thread I was on got me to thinking about how tax increases can hurt lots of people, not just the so-called rich. Just so happens, I'm both employed by someone else and a small business owner. I also do my own taxes and keep an eye on how my income affects my own return.
My first subject is the inheritance tax. So, right now, that's not much to worry about for most, but there is an expiration date on the bill that raised the taxable value to where it is now. If it is allowed to expire, an estate worth over $600,000 will again become taxable. Maybe you don't think it will affect you, but it might and estate taxes aren't cheap - like 45%.
Suppose you die owning a house, a car, a life insurance policy, an IRA or 401(k), and a few other things, maybe some land you bought for retirement - maybe your parents left you some stocks. Think about this - your house is worth $200,000, your life insurance policy is worth $200,000, you have $100,000 in your retirement fund, and that land you bought for your retirement is worth about $100,000. You're already up to $600,000 and you haven't even counted your other assets.
So, do I have your attention? Most people don't consider themselves "rich enough" to be concerned about the inheritance tax, but if that bill expires, you just might be. You didn't work your hind end off all your life just to give half your estate to the government to turn around and give it to some lazy woman popping out a baby every few years so she can continue to receive welfare.
More tax issues to follow...
My first subject is the inheritance tax. So, right now, that's not much to worry about for most, but there is an expiration date on the bill that raised the taxable value to where it is now. If it is allowed to expire, an estate worth over $600,000 will again become taxable. Maybe you don't think it will affect you, but it might and estate taxes aren't cheap - like 45%.
Suppose you die owning a house, a car, a life insurance policy, an IRA or 401(k), and a few other things, maybe some land you bought for retirement - maybe your parents left you some stocks. Think about this - your house is worth $200,000, your life insurance policy is worth $200,000, you have $100,000 in your retirement fund, and that land you bought for your retirement is worth about $100,000. You're already up to $600,000 and you haven't even counted your other assets.
So, do I have your attention? Most people don't consider themselves "rich enough" to be concerned about the inheritance tax, but if that bill expires, you just might be. You didn't work your hind end off all your life just to give half your estate to the government to turn around and give it to some lazy woman popping out a baby every few years so she can continue to receive welfare.
More tax issues to follow...
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