Billionaires George Soros and Warren Buffett have joined together with about 20 other wicked rich guys to call for higher taxes on dead people, according to an article on Bloomburg. Currently, the Estate Tax, or Death tax (a tax on inheritance) is set at 35% for all inheritance exceeding $5 million. If the Bush tax cuts expire that tax will go up to 55% of all inheritance over $1 million dollars. The Estate tax is a double tax, because the inheritance was already taxed as income or capital gains, then the same money is taxed again as inheritance at the time of death. It has also historically been a wash, as in, it collected about as much money as it costs to implement.
But none of this matters to George Soros or Warren Buffett. They say they would be happy to pay “their fair share” at the time of their death, in order to keep the government running. What these two forget to mention however, is that they are billionaires! So every time we think about the Death Tax we are supposed to picture Warren Buffett, Bill Gates, and Paris Hilton. Who do these government connected (Soros has donated at least $3 million to democrats) billionaires want us all to forget about? Who will be absolutely ruined by this tax? Farmers will be unable to hand down their farms to their children, without the farm being broken up and sold off in order to pay for this excessive tax.
If the Estate Tax returns to the pre-Bush levels of 55% on all inheritance over $1 million, 25% of our nation’s farms will be affected. About 526,000 farms would be at risk of closing when the owner dies, because the children would not have the cash abailable to both pay the tax, and keep the farm. In almost all of these half-a-million cases, the farm would have to be broken up, and sold off in order to pay the higher death tax rates. With real estate prices skyrocketing in some parts of the country, this only exacerbates the issue. According to a Washington Examiner article:
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.
Already there is a war on, in this country, against small, family, and organic farmers. The government prefers to protect and expand companies like Monsanto, at a detriment to smaller farms which must compete in the market. They also prefer to protect and expand companies like Tyson, putting small slaughterhouses out of business with unaffordable regulation, in the name of safety. This then leads to more beef being tainted, because now all beef is sent through only 13 large slaughterhouses, where there used to be thousands of small ones. The small ones had reputations to uphold if they wanted to stay in business, which meant the consumer or their customers were better regulators than the federal government.(Keep reading about how government destroys small farms.)
I see this as another attempt to centralize and therefore control the food supply in our country. The government wants everyone dependent on them, so that everyone is under their control. This tax is not about “making the rich pay their fair share”. This tax is about destroying anyone who stands in the way of an overbearing Nanny-State. If people do not have to come crawling to the government for food, then we are still free. We know that this tax is not about revenue, because the estate tax costs as much money to collect as it raises. Instead this tax fits into the category of banning raw milk, patenting soybeans, and raiding dairy farms.
When Warren Buffett dies and his inheritance is subject to the Estate Tax, he will pass down $21 billion after the tax. Yes, his family will have lost half their money, and been virtually unaffected. His family will maintain the exact same position and power in the world. But along with Buffett’s surrender of half his net worth, he his forcing farmers who work 50 hour weeks to support their families to sell their farms so that the government can get “their fair share” of tax money. This is about people like Warren Buffett maintaining their power and influence in the world, and no one else ever getting a chance, because every time someone works hard to grow some capital, half of it will be confiscated before it reaches the next generation. If you care more about punishing the rich than protecting family owned farms and the livelihood of half a million Americans, then by all means support the Death Tax. But if you care about the quality of your food, and the quality of life of those who grow it, then you can not be a supporter of the Estate Tax.