I recently posted about a progressive Facebook friend who is displeased with SA’s mayor, Ivy Taylor. She also is displeased with her redneck in-laws who, despite their antipathy toward welfare, are not above keeping a cow on their acreage to avoid paying any significant property tax.
While I’m not judgmental re: people who energetically try to avoid taxes, I have previously blogged about my disgust with the farm/ag exemption. The ag exemption, along with the obscene pension plan that state legislators have provided themselves, are strong evidence of the corruption involved in government.
To my list of pet peeves in government, I am adding a third item – long-term capital gains. These gains are currently taxed at 15% for most people, which is a compromise between some people arguing that these gains should be untaxed and others arguing that these gains should be taxed the same as ordinary income.
I agree with the latter position, but even if I understand the compromise, I don’t understand why the tax code would allow an estate to transfer to its heirs capital assets not only without assessing a tax on its capital gains, but also with its cost-basis increased to its current market value. What uncorrupted legislator would think that makes sense?
For some reason, I’ve never heard this grotesque policy discussed, let alone discussed. Imagine my surprise a couple of weeks ago upon hearing that President Obama is proposing to seek a middle-class tax cut that will be paid for by assessing a capital-gains tax on inherited property.
I look forward to hearing how the Republicans argue against this proposal. Mitt Romney is opening his campaign with an emphasis on helping the middle class, and I would love for him to adopt this proposal.