The Death Tax Cometh...

By
Real Estate Broker/Owner with The LivingWell Team 0588650

banner

The Death Tax Cometh...

One of the great things America did was allow anyone to own land. The chance to own your own piece of land was revolutionary. The King and Crown owned land, but very few others did. When a man could own his own piece of land he could never be homeless, he could earn a living off the land and raise a family.

Enter our wonderful government, they take a great idea and completely mess it up. Some bright boy came up with the inheritance tax laws. This is just another way to tax you on what you have already paid for. We have had a temporary abatement to these laws, but they are about to be reinstated through inaction. You see, the government always wants to raise your taxes; its what they do. They do not want to actually be on record as voting for raising taxes, that would be a political death sentence, so they use a sunset clause. You see they can pass a temporary tax cut (yea!), but with a sunset clause that makes the law expire and die unless they vote to continue it; which they won't cause they love taxes (circular logic). Make sense? Clear as mud? Gotta love politicians...

Ok, back on point. America has always had a huge sense of self. I mean we are AMERICAN's and dag nabbit that means something. You don't tell us what to do or poke us in the eye without wanting to fight. We help the needy and give money to anyone that is in need, even if they hate us. A big part of our National pride in my opinion comes from being tied to the land.

The family homestead, be it a ranch in Texas or a farm in Iowa binds many generations to the land and the country. You may no longer live there, but you grew up there or visited and you feel connected. The inheritance tax rips all that away. If your grandpaw saved his pennies and bought a small farm, he owned it. As time went by, he and grandmaw grew the farm by many acres through hard work. Now in their later years, they pass away and the kids come to make all the arrangements and grieve and BAM! They are now required to pay up to 55% of the market value of the land.

Lets think about this: a 1,920 acre farm (3 sections) valued at $2,500.00 per acre is worth $4,800,000.00 and the government is demanding $2,640,000.00 in payment. FOR WHAT???

Remember, this land was bought and paid for ages ago with money that already had been taxed. The land has had annual taxes paid on it and the families income has had taxes paid on it. Smacks of double taxation doesn't it? This is a terrible law and is causing land fragmentation in Texas. There are fewer and fewer large contiguous chunks of land and fewer family farms and ranches. We need to stop this type of taxation and get back to truly being able to buy and own land without the fear of it being taken away by our own government...

United States Tax Code 

* Taxes are a complex subject and I have used a very simple example; please do not nail me with bazillions of tax law variations.

** All math was done by a Texan and is therefore considered 'cipher-in' and not true accurate mathematics.


 

Comments (0)