An “Anonymous Coward” posted the following ranting comment on an article this morning about “asset protection” AKA “hiding money”.
“The money I make is taxed( once). The money my money makes is taxed.(Twice) When I die my money that I leave to my heirs is taxed.(Thrice) All to support fools who make no money!”
I wish I could get every GOP parrot and talking bobble head to read and comprehend the following explanation. It will stop them from either speaking ignorantly or lying once and for all on the topic of inheritance and capital gains tax. Something they clearly don’t know a damn thing about or pretend not to for the sake of a straw man argument. Let’s break it down:
“The money my money makes is taxed.(Twice)”
…and the money your wife makes is taxed, the money a second job makes is taxed. Doesn’t matter if your money earns money, your labor earns money or if someone gives you money cause they like your smile. It’s all income, all taxable.
“When I die my money that I leave to my heirs is taxed.(Thrice)”
Not on the federal level…only if it’s many, many millions. Or if you inherit property that produces income such as interest, dividends, or rent. Then only the income produced from those investments starting at the time on your death certificate is taxable against the receiver. As of 2010, 11 states assess tax on inherited money including Oregon, Tennessee, Nebraska, Connecticut, Kansas, Kentucky, Maryland, New Jersey, Iowa, Pennsylvania and Indiana. Sorry if you live in one. Tell your heirs to move.
You see, the word is INCOME. Everyone is taxed on personal income, not on the amount of money you have, where you put it or who you give it to. From this day forward you can stop repeating hollow lies and go forth informed about the difference between principal investment dollars and real income.