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LAST BREATH TAX

By Woody Oakes

Much has been said about “Estate Taxes,” more accurately referred to as “Death Taxes” in the news recently.  This is an inheritance tax charged against the property and or funds in an estate upon the death of the owner of the estate, frequently causing the sale of inherited farms and businesses by the heirs to pay this oppressive tax. 

One can quickly imagine a person saving, investing and working, to provide a business or funds to support a disabled beneficiary only to have their plans evaporate, decimated by this “last breath” tax.  Let’s get rid of this last breath tax permanently.

All estates are accumulated after taxes have been paid on them, year after year, so in reality this is double taxation.   Another example of double taxation is the income taxes retirees must pay on up to 85% of their Social Security benefits.

Social Security withholding, also know as FICA, (Federal Insurance Compensation Act) which is forcibly withheld from paychecks is not tax deductible.  If a person happens to be self-employed, they are forced to pay both the employee and the employer share of this tax, still not income tax deductible.

A retired couple, both receiving Social Security benefits plus any pensions they may receive from years of employment, plus any income they may have from savings, investments, etc. if all these total over $44,000, then this couple must pay taxes on up to 85% of their SS benefits.   Again, double taxation. (Please don’t let anyone dishonor these SS payments, calling them entitlements, indicating they are charity.)

Many years ago, $44,000 was a nice annual income, but not anymore.  Just talk to any retired person you may know and ask them about their medical expenses and I’m sure you will get an ear full.

Many government employees, Senators, Representatives and others are not required to pay into SS, but have their own private retirement plan.  Plus in many instances, work and pay SS just enough to get paid from both programs.

But why does taxation on SS kick in at $44,000?  No doubt that level was established many years ago, but costs and values change.  It is way past time this tax be totally removed, or at least the level raised.  How about raising it to the level of a Congressman’s pay, which is about $150,000 per year?

I could tolerate this until my “Last Breath.”

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