The Mugging of Dearly Departed Grandma Betty

14 Responses to “The Mugging of Dearly Departed Grandma Betty”

1. Dirk on August 26th, 2010 8:53 pm

   But you left something out, Del, Jay & Mom said as he left, “WOW, isn’t it WONDERFUL that we live in a land of FAIRNESS~”

   [I thought about having another man hiding in the dark who would represent the individual state inheritance taxes as well. That takes another slice out of grandma Betty's "gift". dt]

2. Siquina on August 26th, 2010 9:34 pm

   Amazing… very talented! I could follow and envision this entire vignette.

   [Thanks, Siquina...maybe you shouldn't encourage me! dt]

3. Marlon on August 26th, 2010 11:03 pm

   That is one way of ripping off our productivity, denying grandchildren an education. Another way is by taxing the rich at a much higher rate. Like a friend of mine said, he never got a job from a poor man.

   [One of the great pathologies in our culture today is a deep lack of understanding the basics of economics. We continue to think that everything is a zero-sum game and if someone is rich, it is because they have somehow taken it from someone else, rather than understanding that economic growth and jobs and the blessings of prosperity are generated by the very ones we seem to be trying to stunt. Never has made sense to me, but there is a different worldview at work around us. Thanks for reading, Marion. dt]

4. Shannon on September 8th, 2010 3:57 pm

   I’m just wondering whether tax policy really has anything to do with a Biblical worldview, the purpose behind The Truth Project? Am currently doing the Truth Project by the way.

   [later post:] By the way, I totally understand how certain uses of our tax dollars are indicative of a non-Biblical worldview (i.e. funding abortion, etc.). It just struck me that taxing estates doesn’t seem to fit into the purpose of the Truth Project.

   [Shannon, I hope you will be able to answer this when you get to Tour 8 and 9 of the Truth Project. A biblical worldview encompasses all of life. It even informs us of the ethical notions regarding the actions of the state. dt]

5. Carolyn on September 12th, 2010 1:11 pm

   Marlon said “that is one way of ripping off our productivity, denying grandchildren an education.”
   May I point you to a challenging proposition that college is a classic waste of time-something the secular as well as the Christian populace looks at as a “sacred cow”.

   [Carolyn, I do think we are way over-sold on college for everyone and I believe there are things taught at the university that are not preparing students well for vocations, as well as the counter Christian worldview positions. However, for engineering and medicine and architecture, etc. I don't know that I would put it in the completely a "waste of time" category. I do think that resident university training is going to wane as other delivery systems continue to grow. Thanks for following the blog! dt]

6. Mike on September 13th, 2010 6:10 pm

   If the kids pay their own way they will value the results more highly! The estate tax is usually only significant for those who have amassed a lot of wealth, which means those who have benefited tremendously from living here in the USA. Most of us, in spite of our hard work, won’t be worth that much when we die. So I for one am not going to get that riled up if some rich people have to pony up for their good fortune (which they certainly got to enjoy by using tax shelters, etc. that the common man would have no access to) while they were alive. Sorry, but the story doesn’t tell the whole story. Those who benefited most should pay the most. If I don’t pay my share of taxes, I’m considered a dead beat. When rich people weasel out of paying their fair share that’s just the way the system works? Baloney

   [Mike, when I hear people say that the rich are weaseling out of paying their "fair share", I simply ask them, as I ask you, what do you think a "fair share" is? The richest 50% of our citizens pay over 96% of the income taxes. The bottom 50% pays none to little. The richest 5% pay over half. When you say they are "weaseling out" does that mean they need to pay all of the income taxes and the rest get off free? By the way, Eugene and Mary haven't weaseled out of paying their taxes. They have payed big taxes on all of it already. The point now is, do you believe it is right for you to take away their business when they die and probably eliminate all of the jobs in that plant? To be honest, Mike, it sounds to me as if you've bought the state's line and you've developed a hatred for the "rich". That's exactly the attitude the state today wants you to have. It is a line that is very different from the one that founded this country and it is a line that will eventually destroy this country. It was the line that nearly destroyed the original Jamestown inhabitants and the Pilgrims until they realized that people should prosper from what they do and those who can take from other's hard work will eventually not work at all. It just doesn't work, Mike. Thanks for commenting. dt]

7. Lynne on September 14th, 2010 10:26 pm

   Oops, you miscalculated. Many states add their own estate tax and have decoupled their tax from the federal limits. So for example, the state of Oregon inheritance tax can add an additional 16% tax to the estate.

   [I thought of adding to the end that after the shock had worn off, and someone said, "Well, at least we have four good paintings left." then another figure in the shadows named "Texas" or, in your case, "Oregon" said, "Not so fast, kiddos..." I know that several states have their own estate tax and I suspect with the way many are financially strapped, more will be looking at it. Thanks! dt]

8. Tony on September 17th, 2010 9:22 am

   Del:
   First, I need to thank you for the example you gave. It took me a while to respond because it really got me thinking. There is a probem I am having with the State’s world view. Any and all taxes for the paintings in this example were already paid. Any and all taxes on the person’s income that was used to purchase the paintings were also paid. The paintings belonged to the widow free and clear. The time has come for the widow’s will be executed, passing on her posessions to her heirs as she has chosen, but wait! The state comes in and demands to be part of that will taking it’s cut first. If there was only 1 priceless painting that the widow had, would it have to be sold in order to convert it to cash to pay the state’s share, the same way the family business or the family farn would be sold?

   Unless I’m missing something, there is not much difference between a thief taking the paintings in the middle of the night and the state taking the paintings “legally”.

   Passing one’s business or property onto the next generation is like passing the baton to the another member of the same team, or in this case, the same family. The state should not be part of this race.

   [Tony...passing on the baton is a great example. I like that! Yes, in most cases the value that property represents has been fully taxed already. The same is true in the Sukup family story and all the other thousands of estates that get hit every year. This is an additional tax (at 50%!) that is simply assessed upon death. dt]

9. Holly on September 18th, 2010 3:28 pm

   Thanks Del. I like your vignette. It’s a clear picture of an economic truth. I agree that most people simply do not understand basic economics. I’m blessed to teach high school Literature. My colleagues who teach economics seem to be doing a wonderful job of explaining from a Christian worldview, even in a public school setting. I know, because when I get to teach Orwell’s 1984, or Animal Farm, our shared students immediately understand the economic implications of Capitalism vs. Communism, or the individual vs. the state. The students see the value of hard work, and the unfairness of having its fruits stolen.

   [Thank you, Holly. Glad to hear of those teaching the truth. This has not been taught generally for years and so we have a citizenry that doesn't understand it. Exciting to hear that students are "getting it"! The implications are so important. There are blessings that flow from following God's design and there are curses that come from denying it. Keep up the good work! dt]

10. Rick on September 20th, 2010 10:16 am

    This is a disturbing vignette that perpetuates the worst stereotypes of those who work for government. If this partisan right wing propaganda is in any way representative of the sorts of “Truth” being propagated by the Truth Project, count me out.
    Since when do I have to embrace right wing politics to participate in the Truth of the Gospel?

    [Rick, thanks for commenting. Actually, it is disturbing to me as well because it does, in a parabolic way, express what happens to thousands of families every year. Would it be disturbing to you if we had used the story of the poor man's only lamb, that Nathan, sent by God, expressed to David when he had taken wrongly? One could say that Nathan was reinforcing a bad stereotype of the king. Or, how God sent Elijah to King Ahab and told him he was going to die because he had taken Naboth's life and seized his property? The truth of God extends to all of life, including the actions of the civil magistrate. I don't see how that can be called "partisan right wing propaganda" or "right wing politics". I believe the Scripture is clear that the state has not been given the right to take whatever it wants. Who will stand before the king and say "You do wrong" if it is not us? Certainly Moses did that. Elijah and Elisha did that. John the Baptist did as well (and lost his head for it) and Jesus said there was no greater man born of woman. Are you saying that we aren't allowed to speak in this area? If so, could you give us a biblical reason? Thanks again. dt]

11. Michelle on September 20th, 2010 4:56 pm

    Didn’t we elect the people in government, that established these laws? Is it not our responsibility for creating things such as they are now? Sounds to me like you feel the way the U.S. is run now is something you want changed. Somethings in our world are just unfair. It’s our job to change what we can and leave the rest to God. Don’t worry, life isn’t always fair. When it isn’t God will take care of the final judgement of right and wrong, good and evil (Rev.11:18). In the end, isn’t all of this HIS anyway?

    [Thanks, Michelle. Actually, I'm not worried. But I do believe that we should hunger for and love righteousness and pursue that which is right and good. That means we must sometimes speak and act. Hopefully we will do so in an attractively winsome way...and maybe the Lord will bless it in such a way that it will even be effective! dt]

12. Rick on September 21st, 2010 11:08 pm

    Del, you write,”I believe the Scripture is clear that the state has not been given the right to take whatever it wants.” I assume you are not opposed to all forms of taxation – particularly when levied by an “elected” government. So where is the line, and why are you fixated on a tax on millionaires? You attempt to deflect the focus by talking about the grandchildren, but the truth is Grandma Betty is a millionaire. Of course you have a right to comment on political matters. But, to my mind you are obligated to tell the families who are looking to you to provide the “Truth” about some very important topics that some Christians might disagree with your politics.
    Until, you do. Count me out.
    James 2: 1-7 (KJV) For if there come unto your assembly a man with a gold ring, in goodly apparel, and there come in also a poor man in vile raiment; And ye have respect to him that weareth the gay clothing, and say unto him, Sit thou here in a good place; and say to the poor, Stand thou there, or sit here under my footstool: Are ye not then partial in yourselves, and are become judges of evil thoughts? Hearken, my beloved brethren, Hath not God chosen the poor of this world rich in faith, and heirs of the kingdom which he hath promised to them that love him? But ye have despised the poor. Do not rich men oppress you, and draw you before the judgment seats? Do not they blaspheme that worthy name by the which ye are called?
    [Rick, sorry I haven't had time to get you a response. I will... Blessings to you! dt]

13. Becky on September 27th, 2010 8:21 am

    This fits in with the taxed businesses and inheritance taxes.

    (A little economics lesson… thanx to Roger Hedgecock’s website…)
    This Is Why There Are No Jobs in America…

    By Porter Stansberry
    Saturday, August 21, 2010

    I’d like to make you a business offer.

    Seriously. This is a real offer. In fact, you really can’t turn me down, As you’ll come to understand in a moment…

    Here’s the deal. You’re going to start a business or expand the one you’ve got now. It doesn’t really matter what you do or what you’re going to do.
    I’ll partner with you no matter what business you’re in – as long as it’s legal.

    But I can’t give you any capital – you have to come up with that on your own. I won’t give you any labor – that’s definitely up to you. What I will do, however, is demand you follow all sorts of rules about what products and services you can offer, how much (and how often) you pay your employees, and where and when you’re allowed to operate your business. That’s my role in the affair: to tell you what to do.

    Now in return for my rules, I’m going to take roughly half of whatever you make in the business each year. Half seems fair, doesn’t it? I think so.
    Of course, that’s half of your profits.

    You’re also going to have to pay me about 12% of whatever you decide to pay your employees because you’ve got to cover my expenses for promulgating all of the rules about who you can employ, when, where, and how. Come on, you’re my partner. It’s only “fair.”

    Now… after you’ve put your hard-earned savings at risk to start this business, and after you’ve worked hard at it for a few decades (paying me my 50% or a bit more along the way each year), you might decide you’d like to cash out – to finally live the good life.

    Whether or not this is “fair” – some people never can afford to retire – is a different argument. As your partner, I’m happy for you to sell whenever you’d like… because our agreement says, if you sell, you have to pay me an additional 20% of whatever the capitalized value of the business is at that time.

    I know… I know… you put up all the original capital. You took all the risks. You put in all of the labor. That’s all true. But I’ve done my part, too. I’ve collected 50% of the profits each year. And I’ve always come up with more rules for you to follow each year. Therefore, I deserve another, final 20% slice of the business.

    Oh… and one more thing…

    Even after you’ve sold the business and paid all of my fees… I’d recommend buying lots of life insurance. You see, even after you’ve been retired for years, when you die, you’ll have to pay me 50% of whatever your estate is worth.

    After all, I’ve got lots of partners and not all of them are as successful as you and your family. We don’t think its “fair” for your kids to have such a big advantage. But if you buy enough life insurance, you can finance this expense for your children.

    All in all, if you’re a very successful entrepreneur… if you’re one of the rare, lucky, and hard-working people who can create a new company, employ lots of people, and satisfy the public… you’ll end up paying me more than 75% of your income over your life. Thanks so much.

    I’m sure you’ll think my offer is reasonable and happily partner with me… but it doesn’t really matter how you feel about it because if you ever try to stiff me – or cheat me on any of my fees or rules – I’ll break down your door in the middle of the night, threaten you and your family with heavy, automatic weapons, and throw you in jail.

    That’s how civil society is supposed to work, right? This is America, isn’t it?

    That’s the offer America gives its entrepreneurs.
    And the idiots in Washington wonder why there are no new jobs…

14. Steve on October 8th, 2010 2:46 pm

    Nice story, Del! My small group finished the Tours last night, and it’s been a fantastic experience!

    Just a couple of notes, I see that Lynne must, like me, be in Oregon, and yes, anything over $1MM is fair game for the state (Tennessee’s exemption was $900K before I moved out here 3 years ago). Further, the amount under $1MM is not free of tax, but is rather covered by a “tax credit.” Thus, $999,999.99 pays zero tax, while $1,000,000.00 pays something north of $30,000.

    The Feds, this year anyway, do not currently have an inheritance tax, although they still have Generation Skipping Tax, which for years was levied to combine with the Inheritance Tax to result in a possible (although somewhat rare) rate of 110%. Anyone dying in 2010, as of now, owes NO federal estate tax, no matter how large the estate.

    However, if Congress does nothing (their specialty), the law will “sunset” on 1 January 2011, setting the unified credit back to $1MM and the top rate back to 55%. The beauty of this is that Congress can enact a large tax increase, and even blame it on Bush, simply by doing nothing. I am on record as predicting massive power outages at nursing homes around the country at ten minutes to midnight on 31 Dec. :^)

    And as a side note from one of those bespectacled bankers, we almost never sit all together in a room and “read the will.” That’s TV stuff. ;^)

    [LOL! True...TV and vignettes! Isn't it interesting how a number of writers have chastised Congress for "allowing" people to keep their estates this year? As if it were the moral thing to take them. How upside down can we get? Thanks for writing, Steve. And, by the way...thanks for being a bespectacled banker! dt]

Leave a Reply

Comments are moderated and will not appear until they've been approved. While we are eager to facilitate conversation by publishing most comments, we may withhold one from time to time if we deem it to be inappropriate, i.e. offensive, vulgar, overly personal, cynical, disrespectful, irrelevant, redundant or unnecessarily contentious (what a list, huh?). Check it over for spelling and grammar before you submit so that nothing will hinder your eloquence!