Fixing Social Security (Secretly)
George W. Bush is not one of my most favorite people. I disagree with almost all of his decisions, and he sounds like an idiot when he tries to talk without a speech in front of him. But the smartest thing I think he's done is to secretly fix the Social Security problem. Here's how his secret plan works....you read it here first!
As some of you may know, Bush has passed a number of new tax laws since he's been in office. Most of these laws reduced tax rates for the rich while being sold to the public that it reduced taxes for the poor. One of these taxes is the estate tax ("death tax"). The estate tax is what the government takes when you die, if they decide you are too rich and have too much money or net worth built up at the time of your death (over the exemption amount, which is currently $1.5million). Before Bush was in office, the highest rate for estate taxes was a whopping 55%. Yep - if you were super rich, didn't plan well, and then died, the gov't would take away more than half of your estate. It's one way the government taxes the rich and gives to the poor.
Anyway, Bush (and most Republicans) don't like this "death tax". They would like the rich to stay rich, and fund the government with poor and middle class people's incomes. (My first blog warned you that this was an opinionated blog - so deal with it!) So when Bush passed his tax reform bills, one of the things he did was get rid of the estate tax. Well, that's how he promoted it. What it really does is reduce that maximum 55% rate gradually over several years. Then in the final year of this tax bill (2010), it completely abolishes the estate tax. But when 2011 hits, this bill expires, and the estate tax goes right back to 55% again. This is called a sunset provision. (Mind you, this all only happens if Congress and teh President don't make new laws to change these ones or supersede these - that's always up in the air as a possibility.)
Anyway.... For the ONE year of 2010, there will be absolutely NO estate tax whatsoever, no matter how rich or how much money you have (with the caveat stated above - that someone doesn't change the rules). But that means you have to DIE in 2010 in order to take advantage of this benefit. By putting in the sunset provision so that there's only one year where you won't have estate taxes, Bush has secretly fixed the problem of the under funded Social Security system. He has bet on the possibility that there will be enough deaths, suicides, and murders of old rich people so that the Social Security system won't have as much money to pay out as projections currently show. Get it? If we take out enough of the old folks in 2010 (or they take themselves out for us), there will be so much savings in Social Security payments that we will be back in balance! Then there's a greater chance there will be SS left for the younger generation!
So if you're rich and over 65 years old 2010, be watching your back...
As some of you may know, Bush has passed a number of new tax laws since he's been in office. Most of these laws reduced tax rates for the rich while being sold to the public that it reduced taxes for the poor. One of these taxes is the estate tax ("death tax"). The estate tax is what the government takes when you die, if they decide you are too rich and have too much money or net worth built up at the time of your death (over the exemption amount, which is currently $1.5million). Before Bush was in office, the highest rate for estate taxes was a whopping 55%. Yep - if you were super rich, didn't plan well, and then died, the gov't would take away more than half of your estate. It's one way the government taxes the rich and gives to the poor.
Anyway, Bush (and most Republicans) don't like this "death tax". They would like the rich to stay rich, and fund the government with poor and middle class people's incomes. (My first blog warned you that this was an opinionated blog - so deal with it!) So when Bush passed his tax reform bills, one of the things he did was get rid of the estate tax. Well, that's how he promoted it. What it really does is reduce that maximum 55% rate gradually over several years. Then in the final year of this tax bill (2010), it completely abolishes the estate tax. But when 2011 hits, this bill expires, and the estate tax goes right back to 55% again. This is called a sunset provision. (Mind you, this all only happens if Congress and teh President don't make new laws to change these ones or supersede these - that's always up in the air as a possibility.)
Anyway.... For the ONE year of 2010, there will be absolutely NO estate tax whatsoever, no matter how rich or how much money you have (with the caveat stated above - that someone doesn't change the rules). But that means you have to DIE in 2010 in order to take advantage of this benefit. By putting in the sunset provision so that there's only one year where you won't have estate taxes, Bush has secretly fixed the problem of the under funded Social Security system. He has bet on the possibility that there will be enough deaths, suicides, and murders of old rich people so that the Social Security system won't have as much money to pay out as projections currently show. Get it? If we take out enough of the old folks in 2010 (or they take themselves out for us), there will be so much savings in Social Security payments that we will be back in balance! Then there's a greater chance there will be SS left for the younger generation!
So if you're rich and over 65 years old 2010, be watching your back...
posted by g at
5:08 PM
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