76-09-A3

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More About Taxes

Transcript When someone talks about estate or inheritance tax, he runs the risk of appearing to be carrying a torch for the downtrodden rich. So let me say in advance I'm going to talk about estate taxes even though I think the wealthy can probably take care of themselves. We tend to forget that a family farm (and 98% of our farms are family owned) is an estate subject to inheritance tax when the farmer passes on and leaves it to his wife and children. The family owned store on the corner, the repair shop, or small business is the same. These farms and small businesses are really the backbone of our free enterprise system -- millions of individual citizens making their own way, gambling that they can provide a service or product that people need and will buy. Not too long ago the estate tax was no problem to these private entrepreneurs. The assessed value of the farm or business was low enough that it could be passed on with no financial strain to the sons and daughters who had grown up working with their parents in the family enterprise. But then came inflation. The family scale of living did not change or improve, but the assessed valuation of the property was vastly increased. Estate taxes following the death of the family head made it impossible for the heirs to keep the farm or business. It had to be sold to meet the demands of government. Now a Wisconsin Congressman, Henry Reuss, has introduced a bill H.R. 967, which may well be the final straw to break the camel's back. Not only will the estate tax continue to be a confiscatory tax grab based on an inflated increase in assessed value which really is nothing more than the reduced value of our money, but a new tax will be added to make sure there will be nothing left. Let me reiterate, inflation has literally doubled the dollar price of business properties and for that matter the house you live in. But you don't really own twice as much real value. It's just a phony paper increase. H .R. 967, if passed, will add a capital gains tax on top of the estate tax. In other words, government will tell you, if you are an inheritor, that phone increase represents a profit and therefore it must tax what remains after you've paid the estate tax. Congressman Reuss has an answer for those who say his bill can well mean the end of family-owned enterprises. He is quoted as suggesting they -- QUOTE -- "Sell out to big corporations or conglomerates" -- UNQUOTE. How does that fit in with the anti-big business attitude of the majority in Congress who talk of breaking up the corporations and conglomerates? There is one unarguable answer in this time of inflation to the unfairness prevalent in our tax system. It is an answer to the problem of capital gains tax, estate taxes and the income tax which moves you up into a higher tax rate when your increase in pay is only enough to match the increased cost of living -- it is called indexing. It means to adjust the tax rates to reflect the reduced value of the dollar due to inflation. This is Ronald Reagan. Thanks for listening.		Details Batch Number 76-09-A3 Production Date 01/19/1977 Book/Page RihoH-271 Audio Youtube? No
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