Taxes

Why Paris Hilton Makes a Poor Poster Child for the Death Tax

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From Instapundit:

“The idea behind the estate tax is to prevent the very wealthy among us from accumulating vast fortunes that they can pass along to the next generation,” said Patrick Lester, director of Federal Fiscal Policy with the progressive think tank — OMB Watch. “The poster child for the estate tax is Paris Hilton — the celebrity and hotel heiress. That’s who this is targeted at, not ordinary Americans.”[emp added]

This is just one problem with that little story:

Conrad Nicholson Hilton  (December 25, 1887 January 3, 1979) was an American hotelier. He is well known for being the founder of the  Hilton Hotels  chain.

…

In 1979, Hilton died of natural causes at the age of 91. He is interred at Calvary Hill Cemetery, a Catholic cemetery in  Dallas, Texas. He left $500,000 to each of his two surviving siblings and $10,000 to each of his nieces, nephews and to his daughter Francesca. The bulk of his estate was left to the  Conrad N. Hilton Foundation,[6]  which he established in 1944. His son,  Barron Hilton, who spent much of his career helping build the Hilton Hotels Corporation, contested the will, despite being left the company as acting President, Chief Executive Officer, and Chairman of the Board of Directors. A settlement was reached and, as a result, Barron Hilton received 4 million shares of the hotel enterprise, the Conrad N. Hilton Foundation received 3.5 million shares, and the remaining 6 million shares were placed in the W. Barron Hilton  Charitable Remainder Unitrust.[6]  Upon Barron Hilton’s death, Unitrust assets will be transferred to the Hilton Foundation[citation needed], of which Barron sits on the Board of Directors as Chairman.[7]

On December 25, 2007, Barron Hilton announced that he would leave about 97% of his fortune (estimated at $2.3 billion),[7]  to a charitable unitrust which would eventually be merged with the Conrad N. Hilton Foundation.[8]  By leaving his estate to the Foundation, Barron not only donated the fortune he had amassed on his own, but also returned to the  Conrad N. Hilton Foundation  the Hilton family fortune amassed by his father, which otherwise would have been gone to the Conrad N. Hilton Foundation 30 years previously had Barron not contested his father’s will.[emp added]

So, not only has Paris Hilton not inherited anything yet, because her grandfather is still alive, she won’t inherit anything major ever. It all goes to charity. Paris Hilton is a sleazoid, but she is a largely a self-made sleazoid. Her personal financial assets are almost entirely the result of her leveraging her, uh, other assets via secret sex tape into a bizarre celebrity career. She’s worth several hundred million now, none of it inherited.

Paris Hilton has been trotted out by Leftists for years as an example of the need for the death tax and yet apparently none of them bothered to actually check if she was actually an heiress. The elite Democrats who carefully construct the party’s talking points, don’t seem to even bother to check Wikipedia. (Or they do and just assume that the average Leftist voter won’t.)

The real point of interest here is not the inanity of the death tax, but rather the studied indifference of the Democrats and Leftists in general to actually studying the wealthy and telling the truth about them.

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After Math – Going Mini-Galt

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Blondie and I went to bed Tuesday night around 9:30, already fearing that things were not going well as regards Mitt Romney’s chances of taking up residence in that big official governmental residence on Pennsylvania Avenue in Washington … so it was not a totally incapacitating shock to the system on Wednesday morning to wake up (to the tune of our next door neighbor’s Basset hound incessantly barking G*d, are we beginning to hate that dog!) in the wee hours, turn on the computer and discover that Michelle will have another four years of lavish vacations on the government dime.

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The Beer Index

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Pity the UK government. Like most, they have had a great deal of trouble closing the gap between money spent and tax revenue. And, like most, they have scrambled to raise taxes in order to increase the amount of money coming in.

One of the items hardest hit with rising tax rates in Great Britain is beer.

The powers-that-be have enacted a “beer duty escalator“, which automatically raises the tax on beer by 2% over inflation every single year. According to the article behind the last link, the average beer drinker in the UK now pays £177 every year just in taxes alone. The average pub owner must shell out £66,000 per year in beer taxes, above and beyond the overhead costs that come from running any small business. And, thanks to the automatic increases, every year is going to be worse than the last.

As any economist who hasn’t drunk deep of the Liberal kool-aide will tell you in a heartbeat, adding frivolous costs to any commodity will result in limiting demand. Beer sales in the UK have plummeted, while close to a score of pubs across the island nation have been going out of business every week.

Just think of all those people who were dependent on the family business, now out of work and on the dole. I don’t have the numbers to tell for sure, but it wouldn’t surprise me in the least to find out that any jump in revenues realized by the beer duty have been more than offset by the increased number of people who now rely on public assistance.

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Take Home Candy – A Halloween Tax Parable

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This was supposed to go up yesterday but apparently I forgot to hit the “publish” button. *Sigh*


Joe Biden and the debate

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A clownish Joe Biden mugged, groaned and interrupted Paul Ryan for 90 minutes last night. It was an odd spectacle but, apparently, just what the Democrats wanted. He lied about the Libya story and now Bill and Hillary Clinton may be thinking rebellion. Biden strongly suggested that the State Department was to blame for the murders because they did not ask for more security, in spite of the testimony before Congress the day before. If Hillary thinks she sees the bus coming, she may jump ship and it won’t be pretty.

With tensions between President Obama and the Clintons at a new high, former President Bill Clinton is moving fast to develop a contingency plan for how his wife, Secretary of State Hillary Clinton, should react if Obama attempts to tie the Benghazi fiasco around her neck, according to author Ed Klein.

Biden also lied about Iran and their nuclear ambitions. He dismissed the danger of doing nothing. He said they do not have a “delivery system.” They have a delivery system named Hezbollah. Iran may not have an intercontinental ballistic missile that can reach the US, yet. If Iran were to choose to attack the US, a container ship and a US port are much more likely to be involved than a new missile. Certainly, Israel is within reach as are the countries of Europe. Saudi Arabia is within reach. The Sunni-Shia rivalry is sufficient motive but the other reasons should not be ignored. Iran is ruled by a sect of suicidal maniacs.

Ryan capably described the Romney-Ryan tax proposals and his Medicare plan. I expected the abortion question and I thought it was well handled. Biden, of course, lied about the administration’s rules for health insurance coverage of contraception and abortion. That is not a big issue for me as I am pro-choice but the dishonesty is annoying. The “47% issue” and Ryan’s mention of a “30% who are takers” will not bother many people who agree and the offended are likely Obama voters no matter what happens.

It will be interesting to see what the result will be. The left, of course, is excited by the nasty tone Biden adopted.

On their $5 trillion tax cut, Romney/Ryan really need to either start naming the loopholes they’d close to pay for it or just admit they can’t make it revenue neutral without whacking the middle class. The VP was appropriately relentless on this point. Even I’m starting to feel sorry for them every time someone brings up this little flaw in their plan. I suspect I’m not alone in realizing that this country simply can’t afford to elect people promising a tax cut of this magnitude who, when it comes to paying for it, essentially say “trust us, we’ll find a bipartisan solution.”

The “$Five trillion tax cut” has been thoroughly debunked, including Stephanie Cutter’s retreat from the claim.

But, as I pointed out, Gov. Romney has already taken capital gains and dividends-for example-off the table. Now, here’s the revealing part: Larry said, and I know many in the investment community, including Mitt, feel exactly the same way, “I don’t consider those loopholes.”

So, here is a lefty who wants to raise taxes on investment income and capital gains. I don’t see enough responses pointing out that this income has already been taxed as ordinary income. Mitt Romney and most investors had salary income, taxed at the rates of the time, which they saved and invested. The capital gains and dividend income is income that was already taxed once. The left simply does not understand this.

Ryan kept his cool and Biden played the fool. Ann Althouse was impressed as I believe many women were impressed.

As I said, I’m tired of the yelling. I found the debate really hard to watch, but I kept watching because I was committed to live-blogging. Even still, I got catatonic. There was a point when I didn’t write anything for 20 minutes and then I said:
Biden has been yelling at Martha Raddatz for the last 15 minutes (as the subject is war). It’s so inappropriate!

The previous post had been:
The stress level is rising. Biden is so angry. Why is he yelling? Ryan needs nerves of steel not to lose his cool. I’m impressed that Ryan, when he gets his turn, is able to speak in an even, natural voice. It’s hard to concentrate on the policy itself, because the emotional static is so strong.

That shows how I felt: pain. So here’s my question. Ratings were down, I see, but when were the ratings taken? In the beginning? How did the ratings drop off over the course of the 90 minutes?

I have seen many comments about people, especially women, turning off the debate because of Biden’s rudeness and blustering. The ratings were down and the question is when were the ratings surveyed ? Of course, last night was also a big sports night. I think Ryan did better than the initial impressions suggest.

If Obama uses the Biden debate tactic as a model for next Tuesday, the election may well be over.