Latest Post | Last 10 Posts | Archives
Previous Post: Question of the day
Next Post: Rocky Wirtz
Posted in:
* Senate President Don Harmon has also said he believes a major root cause for people leaving Illinois is the state’s estate tax. WGLT…
There’s a push to change inheritance laws in the state of Illinois, and an unexpected source is taking up the cause.
You don’t usually find Democrats picking up the gauntlet to weaken provisions of a law originally intended to prevent the concentration of capital into hereditary wealthy elites. But State Sen. Dave Koehler of Peoria said there’s a sound economic development reason to do so.
“You know what I think the number one reason that people leave Illinois is? I think it’s the way we structure our estate tax,” said Koehler. […]
Koehler supports a bill to increase exemption to the estate tax from $4 million to $12 million. He said the federal exemption already is set at $12 million and will go to $12.9 million this year. In Illinois, for estates above $12 million in value, the estate tax percentage goes up as the size of the estate, until it tops out at a 16% marginal tax rate on inheritances of $10 million and higher. […]
Koehler said it’s not just farmers who are affected, but the families of small business owners, who also might be forced to shut down to pay the inheritance tax.
“I talked with somebody who is a retired teacher who said their accountant tells them if they really want to pass on their family wealth they really need to move to another state. That’s driving a lot of decisions. We really need to address that,” said Koehler.
Thoughts?
posted by Rich Miller
Wednesday, Jul 26, 23 @ 11:11 am
Sorry, comments are closed at this time.
Previous Post: Question of the day
Next Post: Rocky Wirtz
WordPress Mobile Edition available at alexking.org.
powered by WordPress.
My understanding is that there’s this quantum jump at $4 million, where if you’re under it nothing gets taxed and if you’re over it everything gets taxed. If that’s the case, one sensible first step would be to keep the threshhold at $4million but only start taxing the amount above it. That’s going to keep taxing the mega estates (and those people have probably already made up their mind and either stayed or left) while giving some relief to the “middle-class of huge estates.”
Comment by lake county democrat Wednesday, Jul 26, 23 @ 11:21 am
$4,000,000 is kind of a low threshold. A lot of small businesses are worth more than that. It is pretty easy to move to another state and become a resident. I would bet a lot of people lucky to have an estate that large already have a second home in either Wisconsin, Michigan, Indiana or Florida. None of which have any state estate tax. I believe you can just spend 6 months there out of a year and you can become a resident.
Comment by Been There Wednesday, Jul 26, 23 @ 11:23 am
Well then…move.
Go ahead
At the end of your life go ahead and move.
That sounds like a good idea s/
I’m so tired of the right or conservative influenced pulling the line of
The wealthy will move out
The wealthy will move out
If they don’t want to be here
Please just move
We have to fund the functions of government.
4 million seems plenty big to the majority of folks in this state who die with a fraction of that.
I’m disgusted with the privileged always trying to get out of their fair share of taxes.
Comment by Honeybear Wednesday, Jul 26, 23 @ 11:24 am
If somebody’s accountant is telling them to move to another state, instead of the massively simpler option of structuring the business as a corporation, then they need to get a new accountant.
Taking what is clearly bad advice from some unnamed random accountant, is not a useful way to set policy.
Comment by TheInvisibleMan Wednesday, Jul 26, 23 @ 11:24 am
=== Senate President Don Harmon has also said he believes a major root cause for people leaving Illinois is the state’s estate tax. WGLT… ===
Seriously … Perhaps a concern in the high tax brackets and wealthy farmers, but in the IL folks in my bracket the complaints focus on property taxes.
Comment by Norseman Wednesday, Jul 26, 23 @ 11:24 am
Uh…what retired teacher is Dave Koehler talking to who has an estate over $4,000,000?
Comment by The Truth Wednesday, Jul 26, 23 @ 11:24 am
I’m generally against anything that reduces estate taxes, but $4M to $12M for the exemption is reasonable. They should pair it with higher tax rates on larger estates, though — if you have over $100M, let’s see that rate go up to 25%.
Comment by Suburban Mom Wednesday, Jul 26, 23 @ 11:29 am
Anytime, anyone, regardless of party wants people to keep more of their earnings/wealth I’m a big fan.
Comment by Donnie Elgin Wednesday, Jul 26, 23 @ 11:30 am
===what retired teacher===
You beat me to it.
Comment by Nick Name Wednesday, Jul 26, 23 @ 11:31 am
I believe a major root cause for people leaving Illinois is the state’s winter weather.
Comment by 47th Ward Wednesday, Jul 26, 23 @ 11:33 am
As the saying goes when the wind shifts over the farm…smells like…money.
I know many, many more people who have done terrible things with their financial affairs because they were unduly afraid of taxes than people rich enough to actually justify making any major life style decisions based on taxes.
Since we’re just hypothesizing from anecdotes, mine certainly suggest that the issue of exodus (if it is one) would be better resolved with better financial education and PR than reducing IL taxes on multimillionaire estates.
Comment by Stephanie Kollmann Wednesday, Jul 26, 23 @ 11:33 am
The teacher could have inherited the money or be married to a high wage earner.
Comment by Big Dipper Wednesday, Jul 26, 23 @ 11:33 am
===Uh…what retired teacher is Dave Koehler talking to who has an estate over $4,000,000? ===
Two-income family, other partner has a 401K that’s been in stock markets for 40 years, who bought a $130,000 house in the suburbs in 1982 that’s now worth $1.3M?
Comment by Suburban Mom Wednesday, Jul 26, 23 @ 11:36 am
Property taxes are why I left. I cut my housing costs 50% by doing so.
Comment by Fav Human Wednesday, Jul 26, 23 @ 11:37 am
Who came up with 16%? I don’t think the rates should be higher than the annual Income tax rate, it should be less.
Comment by Al Wednesday, Jul 26, 23 @ 11:38 am
The last year we have data is 2020, and in that year, 860 estates filed a return (132,701 deaths in Illinois that year so 0.65% of people that die have pay the tax).
So how many people are we talking about that move out of Illinois because of the estate tax?
And if we do want to have an estate tax in Illinois, how many people do we think should actually be subject to it?
Comment by Numbers Wednesday, Jul 26, 23 @ 11:38 am
===You know what I think the number one reason that people leave Illinois is?===
Show your work.
IF we’re going to reduce taxes on the wealthy, we should do what Gov. Reagan did. To get his budgets (remember, until Jerry Brown’s second time as governor, CA had a 2/3rds requirement to pass a budget) & social service cuts, he agreed to a version of Minimum Alternative Tax that worked. His wealthy supporters weren’t happy.
Comment by Anyone Remember Wednesday, Jul 26, 23 @ 11:44 am
Reforms to lower tax burdens and encourage people to stay in Illinois are always welcome.
It is also welcome to hear any acknowledgment from the “Akshually high taxes are best” crowd that taxes are hurting people and making the state less competitive.
No doubt it will confuse a lot of people on this board.
Comment by JB13 Wednesday, Jul 26, 23 @ 11:47 am
In answer to Honeybear- the real problem is that the exemption has been 4 million for a very long time with no inflation adjustment. If the exemption was inflation adjusted there would be no concern. Today the adjusted number would approach 10 plus million. How would honeybear like it if the pension payment was set 30 years ago without the 3 percent adjustment. The issues are identical in terms of fairness and economic reality. The Feds adjust deductions and exemptions for inflation. Illinois is an outlier
Comment by Sue Wednesday, Jul 26, 23 @ 11:50 am
Look at the states people are moving to. Look at their inheritance laws.
Other than retirement people relocate to states mostly for economic opportunity.
Comment by Just Me 2 Wednesday, Jul 26, 23 @ 11:52 am
===“You know what I think the number one reason that people leave Illinois is? I think it’s the way we structure our estate tax,” said Koehler.===
I just don’t think that’s right.
Maybe for people over 50, “wealthy” people, but some 30 year old moving to Atlanta or Charlotte or Austin isn’t citing “estate tax”
To the idea and the post,
Whatever is the measure of revenue lost, versus what is gained by folks “staying”… it still snows, gets cold, and the days of winter still exist. Global warning might have people rethink that, but that’s a discussion to another matter, and for me, I’m more inclined in the longer term, not anytime soon, I’ll look to Savanah GA or other warmer weather locations no matter any estate tax existing, and I say that, tongue firmly in cheek to counter some teacher holding sway to their thoughts.
If Harmon, et al, want to make this a truer discussion to cost, make the cost be “how minimal” this will impact Illinois.
Comment by Oswego Willy Wednesday, Jul 26, 23 @ 11:56 am
=Uh…what retired teacher is Dave Koehler talking to who has an estate over $4,000,000?=
The same one that used to talk to Rauner.
Interesting numbers from…@Numbers.
Comment by JS Mill Wednesday, Jul 26, 23 @ 12:02 pm
===No doubt it will confuse a lot of people on this board.===
Narrator: it didn’t.
===the real problem is that the exemption has been 4 million for a very long time with no inflation adjustment. If the exemption was inflation adjusted there would be no concern.===
- Sue -
So you are clear, if this was adjusted for inflation you’d have no beef with it staying?
If that’s true, you and - JB13 - should talk, lol
Comment by Oswego Willy Wednesday, Jul 26, 23 @ 12:13 pm
He misspelled “property taxes.”
Comment by Torco Sign Wednesday, Jul 26, 23 @ 12:17 pm
With respect to the other folks commenting on this issue, the estate tax as it is structured is perhaps one of the most regressive anti-middle class taxes in Illinois today.
Consider this: you save your money (after it is taxed), invest it in equipment/buildings/land (taxed multiple times again), grow your farm/business (taxed again at various times), and finally hand it over to your children who (at least in the case of many businesses/farms) have worked in it their entire life and have the entire estate taxed yet again before they can continue the farm/business.
A $4 million estate tax on a modern farm, with good farmland selling for as much as $20-$30k/acre means that the only people who can afford to farm are very wealthy (who put their assets into trusts anyway) or major agribusinesses. Either way, middle-class business owners and small farmers ($20k/acre equals 200 acres max before the estate tax sinks in - not counting any equipment/etc.) get drained and shoved back into crippling loans to get enough capital/acres to afford to continue the business/farm. In the end, using farming as an example, it pushes out individuals in favor of ADM/ConAgra/Monsanto/etc. and their *ahem* stellar record of business ethics.
Replacing the income from this tax is a legitimate concern for budgeteers and for anyone concerned about reducing income when real and tremendous needs (DCFS, immigration, etc.) are pressing, but saying this is only a tax on the wealthy is either uninformed or disingenuous. If you want people to stay in Illinois and raise their families here/build a legacy, don’t punish them for succeeding on a relatively small scale.
Comment by Former ILSIP Wednesday, Jul 26, 23 @ 12:20 pm
This retired educator says balderdash
Comment by Stormsw7706 Wednesday, Jul 26, 23 @ 12:21 pm
Having to sell off the family farm or spend tens (hundreds?) of thousands in life insurance to get the land to the next generation has always been very questionable.
The result has been non-local ownership of the land and in many instances non- American ownership of vast portions of our agriculture economy. At minimum, the uber wealthy simply outbid the production farmers for the land and rent it back to them.
Taxes are paid annually on the land, ripping the farm apart upon death seems not only punitive, but counter productive to our rural communities.
Comment by Um, No Wednesday, Jul 26, 23 @ 12:22 pm
There are many ways to reduce taxes and the richer you are the more there are. There should be and never will be a total remake of the tax codes
And as to why rich leave state I would like to see some serious studies before I believe it is the estate tax. I would bet it is real estate taxes and weather. Finally maybe things should all be adjusted for inflation every 5 or ten years. Wether taxes or amount for a felony charge
Comment by DuPage Saint Wednesday, Jul 26, 23 @ 12:26 pm
I loathe it when politicians pretend to be experts on things without any sort of source citation. You think this is a big deal that is driving people away? I would love to see any bit of actual proof that backs any of this up.
Comment by Victor Kingston Wednesday, Jul 26, 23 @ 12:28 pm
= You know what I think the number one reason that people leave Illinois is? I think it’s the way we structure our estate tax, =
Any actual evidence of that, Sen. Harmon?
Comment by JoanP Wednesday, Jul 26, 23 @ 12:32 pm
Is that teacher who is leaving because of the estate tax… a farmer?
See what I’m saying.
If the discussion turns towards the reality of farm and inheritance or this teacher who seemingly is in a position that needs them to move…
… is the reality what - Sue - points to, or is it boldly and simply just dumping the tax to “dump the tax” truth.
This idea that it’s to help those like a retired teacher… and it’s the top reason 25-49 year olds leaving for Austin, Atlanta, any “A” city south of Illinois…
It’s interesting to the honesty of facts, like - Sue - even insinuating that she’d be seemingly fine with the adjusted number(s)
Comment by Oswego Willy Wednesday, Jul 26, 23 @ 12:32 pm
=== You don’t usually find… ===
Kinda nailed it there.
Maryland, like Illinois, decoupled from the federal estate tax, and taxes estates over $5 million.
Maryland, unlike Illinois, even has an inheritance tax, so that if you leave money to someone other than an immediate family member, they have to pay taxes too, even if it’s only $1000.
Guess what else Maryland has? The highest concentration of millionaires in the country.
The Inheritance Tax is a petty grievance by a relative handful of people who are anti-government and believe the exemption for the Inheritance Tax should be raised to Infinity, because they don’t believe in the “Death Tax”.
So, you are never going to win hearts and votes by raising the threshold, you are only going to lose them if you are a Democrat. Republicans, ironically, don’t pick up any votes either. They are already the party that opposes inheritance taxes, and look where it has gotten them.
You aren’t going to stop people from moving to Florida or Arizona or Wyoming or wherever else they dream of retiring either if that’s what they wanna do and they have $12M to do it with.
Comment by Thomas Paine Wednesday, Jul 26, 23 @ 12:37 pm
Not sure if the driving people away park is accurate or not.
What is accurate is that agriculture is the #1 industry in Illinois by a wide margin and this is a HUGE issue that has gone unaddressed for far too long. The results are very negative for our State and locals as discussed in earlier posts.
Production farmers can’t move for obvious reasons. The land is simply lost due to thoughtless draconian tax policy to those with zero other local interests.
Comment by Um, No Wednesday, Jul 26, 23 @ 12:38 pm
== “You know what I think the number one reason that people leave Illinois is? I think it’s the way we structure our estate tax,” ==
Dude, you are high.
TBH, we have talked about leaving once we retire. The number one reason is weather, the number two reason is property taxes. They are less than half in many places, I can go to TN and get an immediate $5,000 reduction in property taxes for a home of the same value. Likely more by the time I retire, there is a lot to be said for that.
Comment by OneMan Wednesday, Jul 26, 23 @ 12:38 pm
===teacher===
You need to read “The Millionaire Nextdoor.” Guess what. They are teachers.
===6 months===
You don’t need to be in Florida for six months. You just can’t be in Illinois for six months out of the year. So someone can travel a lot and claim residency in a no income/retirement/estate tax state.
The estate tax is absolutely the only reason my octogenarian parent will leave IL for FL residency. Already has the residence there. Just needs to spend a bit less time in Illinois.
Comment by HLV Wednesday, Jul 26, 23 @ 12:40 pm
===So someone can travel a lot and claim residency===
I know people who tried that. Didn’t work. The state came after them hard.
Comment by Rich Miller Wednesday, Jul 26, 23 @ 12:49 pm
=== Two-income family, other partner has a 401K that’s been in stock markets for 40 years, who bought a $130,000 house in the suburbs in 1982 that’s now worth $1.3M? ===
401Ks are not subject to estate taxes. The named beneficiary is going to pay income taxes on that money as they withdraw it over ten years.
No one with a decent financial planner is paying estate taxes on the house, either. The house will be transferred into a trust long before mom and dad die, the trust is is a tax shelter vehicle, and not part of the estate.
Some folks have this Sammy Hagar, “I can’t drive 55” attitude when it comes to wealth. Why have a speedometer that goes to 120 if you never go that fast? And what’s the point of being super-rich if you can’t spend your money however you want?
Well, the good news is if you can keep your name on the deed of your house until you drop dead at 70 and leave $12M in your checking account. You are just going to have to pay estate taxes if that’s the choice you make, so maybe don’t do that of estate taxes really annoy you that much.
Comment by Thomas Paine Wednesday, Jul 26, 23 @ 12:51 pm
“and have the entire estate taxed yet again”
Find me ONE documented instance where this has happened. All these supposed examples are nameless people in nameless towns, with no way to verify they have actually happened. If I can’t verify something, I’m not going to use it as a data point to guide public policy, and I would hope the majority of legislators would act in a similar manner.
If said farmer has not structured their *business* as a c-corp, then I’m sorry I’m just not very moved by the consequences of their own choices in how they have chosen to run their business.
Here’s the rub, the only reason a farmer would not do that setup is if they wanted to keep all the money to themselves - and not their kids. They have consciously made the decision to give no priority to the ongoing concern of their business after they depart.
The state isn’t causing all those things to happen. The financial choices of the farmer are.
The solution already exists. It’s called structuring your business in the proper legal framework. In that case, when the farmer dies, there is zero change to the tax structure of the business.
However, I’m fully aware using farmers is a good way to convince the temporarily inconvenienced millionaires who would be swayed to agree to such a change in the tax code. “That could be me one day”
Comment by TheInvisibleMan Wednesday, Jul 26, 23 @ 12:53 pm
I absolutely guarantee you that most people who move do not do it because they’re worried about what happens to their money when they die. I guarantee it. Incredibly rich people may complain about it, but you do not sell everything and move across the country because you’re worried about the estate tax, it doesn’t happen. If you have nothing tying you to your community, that in and of itself would be the reason to leave.
It’s possibly a reason people don’t move here, but even that I’m skeptical of.
Comment by Perrid Wednesday, Jul 26, 23 @ 12:55 pm
The average Illinois farm is 375 acres – at the current price of $10,300/acre those average farms are getting very close to being under IL’s inheritance tax.
https://tinyurl.com/562fptsz
https://tinyurl.com/2h2jehkf
Comment by Donnie Elgin Wednesday, Jul 26, 23 @ 1:01 pm
If you have to pretend that farmland costing $20-30k/acre is a common scenario you might be inventing a problem.
Comment by Stephanie Kollmann Wednesday, Jul 26, 23 @ 1:05 pm
Or, what Donnie Elgin said.
Comment by Stephanie Kollmann Wednesday, Jul 26, 23 @ 1:05 pm
I am posting before I read other’s comments (I have been outside working on clearing derecho debris).
Philosophically, I have a problem with the idea that people defer paying taxes on the capital gains, and then die. Their heirs then are exempted from paying taxes on all that capital gain.
Workers never get that sort of tax assistance in creating wealth.
That said, I understand the needs of farmers, and would suggest any new tax policy specify that this is for farmers, their descendants, and that the land and physical capital must be retained for a certain number of years.
I am not so convinced that small businesses fit this same model. These citizens are more of the model that I oppose above, namely, deferring taxes on capital gains until death, and then descendants receive all that untaxed capital.
My brother-in-law has did this. He generated many millions in capital by buying homes, fixing them up, renting them, creating a home improvement corporation, etc. He ended up with about 20 rental properties at Virginia Beach, VA. He is now at the end of his life, and his children will inherit a ton of untaxed profit from their father who boasted about avoiding taxes.
If Illinois wants to assist farm families (who buy the way are not leaving because of tax codes), fine. It makes sense to me, at least.
But small businesses and large already defer taxes until death. Deferring them after death is unjustifiable to me.
Comment by H-W Wednesday, Jul 26, 23 @ 1:06 pm
===You need to read “The Millionaire Nextdoor.” Guess what. They are teachers.===
So you’re saying, not property taxes, “crime”, weather, “fees”… it’s the estate tax that was it… driving them to live in their “already” residence in Florida?
It’s a flex, that’s for sure.
Comment by Oswego Willy Wednesday, Jul 26, 23 @ 1:08 pm
Index it and tie it in law to the amount that we raise the minimum wage. It might require the wealthy to consider the people who earn less.
Comment by cermak_rd Wednesday, Jul 26, 23 @ 1:23 pm
For me there’s not much distinction between a spending increase or revenue decrease for the state. If you have an amount of revenue to spend you can either spend it on helping people keep an extra 16% on every dollar over the first $4 million they inherit (sorry, the 16% only kicks in after their first $10 million) or spend it DCFS kids or helping people move out of Choate or infrastructure for prisons or wages for nonretired teachers or tax credits to bring in businesses, all the spending choices looked at every budget year. The apocalyptic scenarios of people moving don’t do much for me. Even after the gas tax there are sill gas stations on the Illinois side of our state borders. That said, its’ a great opportunity for the party in the supermajority to express their values.
Comment by Earnest Wednesday, Jul 26, 23 @ 1:30 pm
“…pretend that farmland costing $20-30k/acre is a common scenario you might be inventing a problem.”
Recent farm sale near me.
TRACT 1 - $20,150 PER ACRE
TRACT 2 - $19,400 PER ACRE
TRACT 3 - $20,150 PER ACRE
TOTAL - $6,772,286.50
Comment by Bruce( no not him) Wednesday, Jul 26, 23 @ 1:33 pm
$10,300 an acre is seriously low for good farm land. 375 acres pretty low for large scale interests.
More like $15,000-$17,000. Part of what drives the price higher is the family owned land getting to the open market due to the inheritance tax issue and large corporate and/or foreign interests (and in our area the Mormon Church and Gates Foundation) simply drowning out actual local production farmers in cash.
Have yet to meet the first local citizen excited about a fifth generation local farm family having to sell to corporate or religious interests due to the estate tax.
Comment by Um, No Wednesday, Jul 26, 23 @ 1:36 pm
Oops
Meant to add before submitting Prices vary wildly by locale and quality of soil and how much tillable.
Comment by Bruce( no not him) Wednesday, Jul 26, 23 @ 1:36 pm
@ Stephanie Kollmann
With respect, in your haste to “correct” me, you might have overlooked the rather glaring inclusion of “hobby farms” in the statistic Donnie Elgin noted. A retiree’s 10 acre organic herb farm that they play with to sell a bit at local farmer’s markets is a rather different thing than a multi-generational family farm.
Even if you assume that $10k/acre is accurate (which Bruce’s figures would indicate is not the case), that still comes out to $3.75 million for only the acreage of the average (including hobby farms) farm. This does not include any supplemental buildings/equipment, such as a $500k combine.
Comment by Former ILSIP Wednesday, Jul 26, 23 @ 1:49 pm
As to the argument put forth by @TheInvisibleMan, requiring farmers to jump through evermore onerous financial hoops is a great way to have fewer farmers and more large corporations (and their teams of lawyers/accountants/lobbyists creating more regulations by the day) buying them out.
Comment by Former ILSIP Wednesday, Jul 26, 23 @ 1:56 pm
For 2022, average Illinois cropland prices are estimated at $8,950 per acre, a record level 13% higher than the 2021 level of $7,900 per acre (see Figure 1). https://farmdocdaily.illinois.edu/2022/08/farmland-prices-higher-but-still-in-line-with-market-fundamentals.html
Comment by very old soil Wednesday, Jul 26, 23 @ 2:04 pm
“… and have the entire estate taxed yet again … .”
Those weeping & gnashing their teeth “for the farmers” would do well to research the works and career of the late Neil Harl, Iowa State University Economics / Agriculture Professor (also an attorney with a focus in estate planning).
“Pity the poor farmer whose land is ripped from his heirs and sold to pay the draconian ‘death tax.’ It never happens, says the man who wrote the book on estate-tax planning.”
https://www.econ.iastate.edu/estate-tax-doesnt-force-farmers-sell-land-harl
Comment by Anyone Remember Wednesday, Jul 26, 23 @ 3:15 pm
It should also be noted that the inheritance has already been taxed at the appropriate rate when earned.
Comment by Double Tax Wednesday, Jul 26, 23 @ 3:33 pm
Southern Illinois farm operators own 22 percent of their land while central Illinois operators own only 14 percent. Operators in northern Illinois own 19 percent.
Comment by very old soil Wednesday, Jul 26, 23 @ 4:07 pm
I’m not going to argue further about farms and money except to say that nothing I have seen in my entire life or in this thread has convinced me that IL’s $4m estate tax presents a serious problem.
Comment by Stephanie Kollmann Wednesday, Jul 26, 23 @ 4:15 pm
$4M estate tax *threshold* I mean to say.
Comment by Stephanie Kollmann Wednesday, Jul 26, 23 @ 4:17 pm
==the inheritance has already been taxed at the appropriate rate when earned==
No one earns an inheritance.
Comment by Stephanie Kollmann Wednesday, Jul 26, 23 @ 4:18 pm
“I believe a major root cause for people leaving Illinois is the state’s winter weather.”
I agree 100%. That said, I’d be ok with a change that tied the state estate tax to the Federal estate tax.
Comment by New Day Wednesday, Jul 26, 23 @ 4:28 pm
“requiring farmers to jump through evermore onerous financial hoops […]”
I don’t recall saying anything about a requirement.
This is an option, that exists today, to allow them to avoid paying the tax they supposedly currently want to take the other option of changing the law, to not pay.
There’s no requirement anywhere in what I said.
This is exactly how I know this argument is nonsense. If there is a farmer *not* structuring their assets in this manner, they they don’t care what happens to their business after they depart. The option exists right now for what this guy claims he wants to do - yet isn’t doing it. These supposed farmers can’t both care about it in words to the extent of wanting to change the law, and not care about it in actions to the extent of not spending a few minutes to file paperwork once, at the same time.
As far as claiming it would be onerous? I can start a new corporation in about 10 minutes with a few clicks. I’ve done it many times in fact. I even have an umbrella corporation to house other smaller corporations.
The bookkeeping is all the same after that, and that gets done as part of the business anyway.
It’s a nonsense argument, specifically using the occupation of farmer, because farmer is more palatable occupation to more of the population than hedge fund operator. No politician is going to come out and say they want to change the law for hedge fund operators, even though they obviously do.
Comment by TheInvisibleMan Wednesday, Jul 26, 23 @ 7:09 pm
Honeybear +1
Comment by Odysseus Thursday, Jul 27, 23 @ 12:47 am