Words of wisdom
We've been remiss of late in not guiding you to the supplemental dose of Ernie Dumas you can get by reading his twice-weekly editorials, generally on Arkansas topics, in the Leader, Garrick Feldman's newsy paper in North Pulaski County.
Good examples:
College bonds: Dumas says colleges have more needs, but wonders what's the need of spending big dollars on interest payments, lawyers and underwriters when the legislature could do the same projects much cheaper with the existing surplus.
Pandering: He found not much to like from either Mike! or A$a! in their remarks on tax policy to Arkansas bankers, particularly A$a's desire to cut the capital gains tax yet again.
Tax cuts always sound good and sometimes inject a small stimulus into the business cycle. But government needs revenue to run the schools, colleges and its many other functions, and it needs to collect it as fairly as possible. It is simply not fair to tax working people on every dime of their wages but give a free ride to the investment class, which now includes to some small extent a good 40 percent of us. If we are to have an income tax, it should be on income, not merely the earned income of workers.
Cutting or eliminating taxes on capital gains may indeed spur more investment, but so would cutting or eliminating income and payroll taxes on wages. Already, the effective Arkansas income tax rate on capital gains and on other high incomes is less than 5 percent. That is because of the 30 percent exclusion of capital gains and the deductibility of state income taxes from the federal tax payments of taxpayers who itemize.
If taxes are to be cut, they are not for those who need it.
Estate tax: There's praise for Mark Pryor's compromise on raising the estate tax exemption to a hefty $5 million ($10 million for a married couple). But Pryor knows as most in Congress do that only total repeal is acceptable to the truly wealthy who are driving this effort and for whom Blanche Lincoln is working so assiduously. Dumas explains the simple arithmetic once more (and suggests that it is the D-G, not Pryor, that has been dishonest about the senator's position on the issue).
Here is all that anyone needs to know to understand Pryor’s predicament. In 2004, only 168 estates in Arkansas were paying federal estate tax of any kind. Most of those involved nominal amounts. In 2009, the last year that the tax is to apply before its one-year elimination, every estate smaller than $3.5 million ($7 million for couples) will be exempt. The tax will apply to roughly 3 of every 1,000 estates.
But those three involve some very powerful people. They are big spenders politically. The 113,000 minimum-wage workers? They will likely not give a dollar to a political campaign.
Comments
"In 2009, the last year that the tax is to apply before its one-year elimination,"
I hate to borrow trouble, but....are we to expect a rash of "fall down" incident involving many of Arkansas's richest folks during that one year the Estate Tax is lifted? Will we hear of Helen Walton found dead at the bottom of the stairs? Will some of Blanche Lincoln's relatives die in mysterious hunting accidents? Will stories start circulating now about the poor health of J.B. Hunt and Don Tyson?
People get killed everyday for the 20 bucks in their jeans pocket, we're talking millions here. If I were mega wealthy and getting a little long in the tooth, I might worry 2010 would be my annus horribilis. Either a good time to hire body guards or get your personal affairs in order.
I've never been a rancher, but I understand it's sometimes good to cut out part of the herd. Maybe rich folks and Arkansas would get a real shot in the arm if some of our elderly very rich were weeded out some. I doubt Mrs. Vanderbilt at 104 can hold out to die in 2010, but we all know her greedy son would love that.
Fort Old Money will be sorta empty if the heirs decide to off Mom or Pop Moneybags in 2010 to beat the Estate Tax. But on the other hand, knowing some of them, the elder super rich after a lifetime of skimping and driving cars with small hubcaps and worrying about tax cuts will understand and in some cases recommend that their heirs kill them in that year because it makes damn fine business sense.
Except for picking up some neat stuff at estate auctions, the Estate Tax will have no effect on my life...unless I win that OK lottery soon. But it's fun to pay attention to the old money folks and watch how they manage to not really ever enjoy their giant pot of gold.
Posted by: Deathbyinches | August 19, 2006 11:52 AM
People get killed everyday for the 20 bucks in their jeans pocket, we're talking millions here.
Better check your names dude. You're talking billions. Times have changed.
And Happy BD DBI !
_
Posted by: LWood | August 19, 2006 02:03 PM
And Happy BD DBI !
Posted by: LWood
It's DBI's birthday? He may get some tonight!! No wonder he has that case of Viagra hidden in his back seat (he mentioned that on another thread).
(A case is kinda optimistic, don't you think, DBI?)
Posted by: Spirit | August 19, 2006 07:51 PM
Death to the DEATH TAX >>>You got that Dumas? Death to the DEATH TAX ! >>>Did you hear that Ernie?
Repeal the whole awful EstateTax law !!! over and out...
Posted by: Anonymous | August 19, 2006 10:38 PM
Repeal the whole awful EstateTax law !!! over and out...
Posted by: Anonymous
Damn! I had my computer set to hide posts with the words "horrible death tax" and now they change it to "awful".
Humans can never defeat humans
Long live the estate tax!
Posted by: Spirit | August 19, 2006 10:57 PM
Lincoln has had a compromise bill for years - Pryor is just coverning himself and has done a better job of promoting his compromise than Lincoln. either that or the media just chooses to ignore her efforts because she is a woman and easier to beat up on.
Posted by: Anonymous | August 20, 2006 10:58 AM
http://www.washingtonpost.com/wp-dyn/content/article/2005/07/23/AR2005072300741.html
"ONE OF THE chief arguments of those seeking permanent repeal of the estate tax is that it cruelly penalizes farmers and owners of small businesses whose heirs are forced to sell off their holdings to pay the tax. "In order to make sure our farms stay within our farming families, we need to get rid of the death tax once and for all," President Bush proclaimed in a speech last month to the Future Farmers of America.
This assertion, though, is more convenient myth than fact -- something that senators might consider when they're called on, perhaps as soon as this week, to vote on abolishing the tax. A new study by the Congressional Budget Office examined estate tax returns filed by farmers and owners of small businesses in 1999 and 2000. The numbers that owed estate tax, the CBO found, were paltry, and the number without enough cash on hand to pay the bill even punier: In 2000, for example, just 1,659 farm estates had taxes due, of which 138 didn't report enough liquid assets to cover their tax liability."
Posted by: estate tax seminar for slow learners | August 20, 2006 02:08 PM
Tanks for the b-day wishes, I like to pretend if you ignore birthdays you'll never get older. That's working as well as staying the course in Iraq.
As far as any, I received none....maybe it's just too damn hot. I'm trying to take a tip from our leaders in the White House and become sexless. If I can just shift my energies to endless greed, endless war-mongering, and world domination, I think I can successfully leave sexual desire in the dust.
For training purposes I plan to go to the Humane Society early tomorrow morning and purchase a box of kittens. As I drive them to my house I will tell them how Sadam was behind 9-11, how it is none of our business what big oil did in Cheney's office, how a BJ is more serious than 100,000 dead Iraqi civilians and how Jesus is their savior too.
Then I will put the kittens in a zip lock bag and toss them in the dryer for an hour on Permanent Press. If any still survive I'll thank them for their service by giving them a 2nd and 3rd tour of duty in the dryer.
After lunch I'll put them all in tiny flag-draped coffins and bury them before someone takes a picture. I assume by cocktail hour at 5 pm I will be free of all sexual desires and ready for a good home cooked chicken dinner. How do you all plan to spend your Monday?
Posted by: Deathbyinches | August 20, 2006 03:04 PM