An Innova Digital Press® article,
published on Wmseco.net
all rights reserved 1999©
A TAX ON YOUR CHILDREN'S CHILDREN (!)
(?)
By Petur S. Williams, Esq.
pswms@email.com
On, September 29, 1999, George Watts (a fictitious name, to protect the anonymity of his grandchildren, for whom this story is told) turned 89 years of age.
Unfortunately, George died on December 11, 1997.
George (his first name, so that he does not seem so distant) began his
life in Ohio. He was born in 1910, making him one of that generation which
saw virtually all of the boons of the Industrial Revolution, right up to
the burgeoning of the Internet.
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(Add here all the boons of the industrial revolution from 1910
through 1997)mass manufactured cars;fast trains, pullman cars, luxury steam ships, passenger planes, nuclear weapons, etc.
This included seeing the automobile, the airplane, and the train go
from 10 miles an hour to hundreds of miles per hour.
George lived through two World Wars.
He was 19 years old when the great Depression began, and 25 when it ended.
For George, and for millions of others who lived through the years of bread lines and massive unemployment
(much like those who live in today's big city inner city populations)
the wars and the depression were never far away, even many years later.
All through g's life, he turned off the lights whenever no one was to be in a room.
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America prides itself on being a country of equals. We are the land
(Whitman one of the great old American poets), in "Chicago" _____________
(of the broad shoulders….).(add all of Chicago?) (music)
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We all have the opportunity to get rich. Many of us do get rich.
On paper, this day, about 3,000 of us become new millionaires, (is
it each year, or is it each month, these days?) Of course, it does not
matter whether it is 3,000 a year or 3,000 a month, if you are not one
of them. But, a million dollars? Really, you do remember when that was
a lot of money.
Do not let them fool you. It still is a great deal of money. (Link
to Billy Bucks)
It still is. A million dollars will buy: Invested at (add here
an interest rate calculator)
7% a million dollars will double to two million and then keep right
on going, without taxation, until, ten years later, it is (result of interest
rate calculation)
A million dollars, invested in (add here a selection system for public
company names and symbols) (Intel, IBM, MOTOROLA, MICROSOFT, BANK OF AMERICA
S&P 500)
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Fully one percent (1%) of our six hundred million (600,000,000?)
people have more than enough money.
In most of the industrialized world, that figure may be half of one
(1/2 %, or .005), might have enough money. (WHAT DOES THAT MEAN?)
But, Every Penny we make is subject
to Tax.
Now, is that true?
No. We pay tax on, at the maximum, (in these days
-- look back at the 1950/60/70/80's).
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On the 65% we keep, we can use every cent exactly
as we like. We live in the land of the free.
Left Intentionally Blank
(SURETRADE AD ON TV Oct. 12, 1999 . We are
not looking for a financial babysitter)
(Link to Northern Light, just what you have been
searching for)
At the end of our lives, the government US (federal
and State together),
Takes over 55% (what is the real rate?) (Charts and
new hyperlinks to other sites)
Left Intentionally Blank
N.B. in legal writing, the most useful thing we
learn is to "write in blank"
Left Intentionally Blank.
The Estate tax makes up approximately one (1%) percent
of the money that the government collects.
There are many arguments for and against the estate
tax.
We are the land of equals. We do not want a class
that has inherited wealth, since that is what we have all left behind us.
Those who came here came here yearning to be free. Free of the rich people,
who, for generations, have stolen from us and lived high on the hog with our hard earned money.
Anyway, the estate tax is about one percent of current
government revenues.
Here is what we do, you and I with our money these
days.
We put it in mutual funds… or we put it in real
estate of we invest in high tech stocks. We understand that we can get
right rich, even without our signing bonus. But, there are some of us who
get signing bonuses, and some of us who get options, and some of us who
get golden parachutes, and some of us who get inherited wealth. Or, what
is left of it.
Left Intentionally Blank
This is the story of an American dream. A family
that got rich in the 1950's, like some of your families, or those of your
parents, most likely.
Worked hard. Saved money. Invested in America. Built
Houses. Started banks, saved money, raised kids, and joined organizations.
Made quite a bit, kept it in land and buildings.
Wanted his kids and grandchildren
to be comfortable, not rich, comfortable, for generations. He had worked
for it, since he was l5.
Left Intentionally Blank
Here is some (bad) timing for you.
Left Intentionally Bland/Blank.
When Democrats look at the Estate tax, they seem
to see it as a tax on the deceased.
Hey, come on guys. The deceased is dead.
The Estate tax is a bill of attainder. It works
a
tax on the next generation.
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How one of America's most law abiding citizens,
lost his family fortune.
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Is it his family fortune, or do we (US, the United
States) get to share it among ourselves. Is there really a need to take
55% of a decedent's fortune, if there happens to be more than $1,000,000
(add here whatever figure you wish)
Left intentionally blank
Let us see what happens.
Here is a model of what happens when we give the
government (Federal and State together) a sum of money Let us use, for
example (since that is what g, or his two sons and three grandchildren,
gave the government, on Sept 12, 1999)
Left Intentionally Blank
So., let us give the government, the federal government
$2,000,000.
Then, let us give any (CFP, mutual fund, accountant,
housewife pension fund) $2,000,000.
First, how do we track it? The government gets ($50,00000000)
(?) every day.
The Mutual fund industry gets ($55555555) (?) every
day.
The insurance companies get ($555555) (?) every
day.
The banking industry gets ($44555555) every day
Left Intentionally Blank
Eventually that adds up to real money.
Left Intentionally Blank
Now that we know how little every one, even the
rich, has let us go forward.
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Do we know how little the rich have?
If we had all of the Forbes 400®
money it would equal one day of China's GDP.
It would last about a day at the Defense department.
Seven billion (7,000,000,000) e-mails being sent
every day. (Lucent Technology ad on Oct, 12, 1999) There is an electronic
revolution going on.
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You know, we all would be happy if the money the
government got was being used in a way that made sense.
Do we get a charitable contribution credit for the
$2,000.000 we gave the government?
What do we get back for entrusting the money with
the government?
What do we get back for entrusting it to the mutual
fund industry?
What do we get back for giving it to a bank?
What do we get back for giving it to a TRUST OFFICER?
(tv ad for Suretrade. We don't want a financial
babysitter)
Left Intentionally Blank
Here is the result of giving a sum of $4,000,000
to a small Trust Company in Boulder, Colorado (at the end,
they give $2,000,000 our g's money to the government, all borrowed from
Colorado State Bank and Trust Company, and g's heirs are indebted to the
lawyers and the accounts in the sum of more than $200,000.
"A fool and his money are soon parted."
(Link to Motley Fool?)
There is an old joke, in every law school, about
a funeral. It is a funeral of a well-known old businessman. The family
lawyer and the family accountant are standing around at the funeral, dividing
the estate, between them.
Insert picture (old triptych of lawyer and accountant
standing in a church)
Left Intentionally Blank
-30- first published10/12/99 3:35:47 a.m.
this revision 3/7/2002 1:38 p.m.
A TAX ON YOUR CHILDREN'S CHILDREN (!)
(?)
By Petur S. Williams, Esq.
pswms@email.com
pswms@wmseco.com
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