Top Trump economic adviser told Dems 'only morons pay the estate tax': report

[DonViejo]

Source: The Hill



BY MAX GREENWOOD - 08/29/17 09:41 AM EDT

Gary Cohn, the director of the National Economic Council, told a group of Senate Democrats during a meeting earlier this year that "only morons pay the estate tax," according to a New York Times report.

A source close to Cohn, however, told the Times that the former Goldman Sachs executive didn't use the word, and was instead referring to "rich people with really bad tax planning." But according to the Times, that comment is an example of what some lawmakers suggest may be a lack of understanding by Cohn of the intricacies and political complexities inherent in rewriting the tax system.

President Trump has publicly railed against the estate tax — often referred to as a "death tax" — and has vowed to fully repeal it. The estate tax is levied on the transfer of property for deceased individuals with an estate worth more than $5.49 million.

Cohn and Treasury Secretary Steven Mnuchin have been charged with devising a winning legislative strategy for tax reform — one of Trump's major campaign promises.



Read more: http://thehill.com/homenews/administration/348374-top-trump-economic-adviser-told-dems-only-morons-pay-the-estate-tax

[MattP]

1. I guess that means we need to crack down on tax loopholes

[Initech]

2. Ugh these people are so fucking horrible!!!

The sooner they're all locked behind bars, the better!

[Achilleaze]

3. republicans see honest American taxpayers as suckers

Last edited Tue Aug 29, 2017, 11:45 AM - Edit history (3)

republicans just fleece honest Americans over and over, a systematic republican screw job. More more more tax breaks for the rich, more more more cuts in public services for the American proles. Disgusting.

[IronLionZion]

4. $5.5 million is probably not the value of family farms and small businesses

So who exactly is being hurt by this tax? The Trump kids? It's not like inheriting his parents' money has ruined Donald's career.

How do lower income Trumpsters fall for this BS?

[More_Cowbell]

6. Republicans are better at choosing simplistic names

"Death tax." "Death panels." And underinformed people buy into that.

In addition to that $5.5 million lifetime estate tax exemption per person, there's another exemption more likely to be used by non-millionaires. First, that lifetime exemption means that no gifts are taxed until you've given away that much during your lifetime. If you give big gifts, you're supposed to file tax forms saying, for instance, "I gave away a million dollars this year, so my lifetime exemption is down to $4.5 million" (and that exemption can increase). You're not paying taxes on it yet.

More importantly for the "little people," if you give gifts that are under the annual gift tax exclusion limit (currently $14,000) they *never* get taken out of your lifetime exemption and are never even reported. You could give millions of people $14k per year, every year, and it would never be taxed-- not estate tax for you, and not subject to any tax imposed on the recipients. [There's a small chance that the IRS would go after the recipient in the event of fraud or something like that, but it would be so many years before the IRS found out about it, that the recipients *never* still have the money.]

As you say, the estate tax is imposed on an extremely small number of people, and most of them have sophisticated attorneys who keep it at bay as long as possible.

[DeeDeeNY]

10. Not to mention zero estate tax if

everything is left to a surviving spouse.

[MiniMe]

5. He can't fully repeal it

He can sign a bill to repeal the federal estate tax, but State estate taxes are out there too. It is something he can't do by executive order

[Historic NY]

7. The rich get richer....

meanwhile the states levy an estate tax at least in NY. The IRS also does on estates generating more than $600 in annual income.

https://www.irs.gov/businesses/small-businesses-self-employed/deceased-taxpayers-filing-the-estate-income-tax-return-form-1041

[MosheFeingold]

8. In a way he is right

I've made a good living over my life and lived very frugally, such that I would have been subject to the estate tax.

I've carefully gifted and placed in trust my estate for over 40 years so that my estate will have very little in the way of estate tax. The rules exist to be used, and I used them.

I probably saved my children, grandchildren, and great grandchildren several millions of dollars simply by being a lawyer, planning ahead, and having a good accountant.

Anyone who is subject to the tax and doesn't take advantage of the laws as written is an idiot.

[elleng]

11. Yes but the language he used is wanting,

and, Moshe, we could do without 'idiot' too, try 'foolish' or other.

[MosheFeingold]

12. Fair enough

But it generally takes chutzpah, frugality, and intelligence to have money to leave to your children. I ate lots of beans and rice and drove old Chevrolets (when we had a car) when my co-workers were eating sushi and driving Mercedes.

There are exceptions, yes. But certainly not most. Most accumulated wealth is done as a grind by one or more generations. It's not like I came to this country with money. We literally had a suitcase of clothes and learned English on the boat.

It's a rare person who can pull off the grind and somehow has not taken into account the the tax code.

And generally speaking, the people who don't plan are the people who lucked into money, instead of earning it.

And a "foolish person" and his money are soon parted.

[elleng]

14. Frugality, and intelligence, yes, 'chutzpah,' maybe not so much.

I won't continue this debate with you, I think we generally agree.

[Adrahil]

16. also yup...

He doesn't have to be an ass about it.

[Adrahil]

15. Yup....

My in-laws have amassed a small fortune.... hardly ground-shaking, but enough to get with the estate tax. They are in the process of developing trusts and gifts to avoid the taxes.

[FreeStateDemocrat]

9. Cutting everyone's taxes is his plan to buy his re-election and get the county on his side.

With ass-wipe and most rich pricks it is all about money, money, money!!!

The sad part is that it will probably work.

[MosheFeingold]

13. Money is pretty important

I've been completely without before. It's very scary and unpleasant not to have money to eat.