Monthly Archives: February 2015

Death Taxes

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Or, as President Barack Obama likes to call them, “trust fund taxes.” Either way, it’s another Progressive attempt to steal the gains of one family—now with its parent safely dead—to transfer them to another group of “families” of whom Obama approves.

As the graph below demonstrates, this latest wealth “redistribution” grab by Obama would represent, if it’s passed, a 36% increase to a world-beating 68% of a family’s hard-earned accumulated prosperity.InternationalDeathTaxRates

Not even the famously social-tax heaven of the UK confiscates that much of a family’s wealth on the death, nor do the social democracy nations of France, Belgium, Spain, Finland, Norway, etc. Russia and the People’s Republic of China have no death taxes at all.

Here’s the deal:

Under current law, when a parent or grandparent dies, the increase in the valuation of his or her asset from when it was originally purchased is not taxed.

This is to offset the effects of the estate tax.

But

Obama’s plan would tax estates and impose the regular capital gains tax on inherited assets—a business, property, or stocks.

That business, far from being a Buffet’s holdings in Berkshire Hathaway, or a Gate’s holdings in Microsoft, is typically the family’s only asset: a mom and pop business that mom and/or pop have spent a lifetime building, with little to no outside cash available with which to pay the Obama vig. They’d have to sell the business; they’d have to sell their children’s future to pay up. That property usually is the family home, which the family finally was able to afford in the late afternoon of the deceased parent’s life. Those stocks…. No trust funds here.

But, no worries. Obama and his Democrat Party Know Better. Their money, temporarily reposing in our hands for a few years, will be well used. Obama says so.

The DoJ Strikes Again

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This case involves a Bureau of Alcohol, Tobacco, Firearms and Explosives ex-agent who sued the BATF over its slander of him and its lack of adequate protection of him and his family after he’d done undercover work for the BATF in the Hell’s Angels motorcycle gang.

United States Court of Federal Claims Judge Francis M. Allegra opened his latest ruling in blunt terms:

On October 29, 2014, the court…issued an order voiding the prior judgment based upon indications that defendant [the United States; the BATF agent was the plaintiff], through its counsel, had committed fraud on the court.

Fraud on the court is an extremely serious bit of…miscreancy. As Allegra explained it,

Fraud on the court “is directed to the judicial machinery itself and is not fraud between the parties or fraudulent documents, false statements or perjury.”

It’s a direct attack on the ability of our judicial system to function at all; it’s not one litigant lying to the other in order to gain an advantage in a particular case.

The underlying case is an indication of the integrity of Attorney General Eric Holder’s DoJ, but I want to focus on the fraud on the court allegation. Allegra focused on two examples he found indicative of a pattern of fraud on the court perpetrated by Holder’s representatives in the case. The first is this:

Testimony at trial indicated that Valerie Bacon, an attorney in ATF’s Office of General Counsel, attempted to convince SAC Atteberry not to reopen the arson investigation [regarding the destruction of the BATF agent’s home, the blame for which was central to the agent’s slander beef]. In this regard, SAC Atteberry testified:

Q. . . . Did you get any kind of discouragement in any respect from anyone at ATF with respect to reopening this arson investigation?

A. Yes.

Q. Please explain.
…
A. I had a phone conversation, and I also believe I talked to her [Bacon] in person one time when she was in Phoenix, and I believe during the telephone conversation she made a comment to me that if you, meaning myself, reopen the investigation that would damage our civil case.

The existence of this illegal conversation was never passed to the court until Atteberry’s testimony. Indeed,

Defendant’s filings regarding this situation demonstrated not only that its counsel—including supervisors in the Civil Division, who received email communications on this topic from plaintiff’s counsel in March of 2013—were aware of Ms Bacon’s actions prior to the trial in this case, but did nothing to apprise the court of her actions or of the potential that the integrity of these proceedings were at risk.

And this instance:

…a taped conversation (a copy of which is part of the appellate record in this case), revealed that defendant’s [the United States, recall] attorneys may have committed other violations of the duty of candor, including a potential failure to advise the court that an ATF agent who testified in this case may have been threatened by another witness during the trial. The taped communication states that defendant’s counsel ordered the agent in question not to communicate the threat to the court and stated that there would be repercussions if the agent did not follow counsel’s instructions. This matter has since been referred to the Office of Professional Responsibility (OPR) at the Justice Department.

Notice that. However,

legal filings show that the agency soon suspended its investigation, saying it would wait to hear what Judge Allegra finds.

This is Eric Holder’s OPR, recall. It suspended the investigation which the judge had explicitly requested be carried out, not a file folder created and then…HIAed.

Unfortunately, the judge has no recourse other than the one he took: to address the matter to…Eric Holder. He did, though, bar the seven defense attorneys from appearing further in his court in connection with this case.

Fox News also asked Attorney General Eric Holder if the lawyers involved had been disciplined. The Department of Justice declined to comment.

Of course not.

The judge’s ruling can be seen here.

Austerity

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President Obama called for an end to “mindless austerity” on Thursday as he announced his desire to end “sequester” spending cuts in his budget for 2015.

No, Obama wants to perpetuate—even expand—the deliberate austerity of excessive government spending and ever-rising taxes. His “budget” calls for a 7% increase in Federal spending to be paid for with increased taxes, including increases in the death tax on inheritances (which Obama is attempting to disguise by calling it a “trust fund” tax). Indeed, Obama’s “thinking” on taxing was exposed by his attempt to tax Americans’ savings for our children’s college, our 529s.

If the Republicans and Conservatives in Congress are smart, they won’t waste time on the Obama stuff. They won’t even respond to his nonsense. They’ll just ignore it and pass a conservative budget that includes both tax reform and tax rate reductions.

Obama’s going to veto anything this Congress passes, anyway; his vetoes should simply be used to shape the ’16 elections.

Driving Death Rate

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It fell sharply in 2012, the latest year for which data were studied by the Insurance Institute for Highway Safety. Assuming Fox News accurately summarized the study, I have a couple questions.

Improved vehicle designs and safety technology have a lot to do with the reduced risk, but a weak economy that led to reductions in driving may also have played a role….

Well, yeah. This is why I’d rather see the death rates per (million? hundred thousand?) miles driven. The Edsel in its half-day might have had a very low rate per million sold, too. Or a sky high rate. Four of the cars the Institute identified as having no deaths in 2012 were luxury cars—which won’t have as many miles driven per model as a middle-class car like Honda Accord or a Ford Taurus.

Then there’s what the Institute used for their baseline: 48 deaths over the 2008-2009 time frame. I have to wonder, given events in the latter half of 2008 and extending through 2009, how many of those 48 were due to design and technology and how many were due to driving while distracted by distraught and/or suicide by driving accident. One such death would skew the results by two per centage points.