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Tuesday, October 12, 2010

Estate Tax Threatens American Families, Communities

Something interesting that came to my inbox - MH

FORT LAUDERDALE, FL (October 11, 2010) –The federal inheritance tax—which could soon snatch up more than half the assets of a deceased person—threatens American families and could yield a devastating blow to entire communities. Dr. Del Tackett and veteran broadcaster John Rabe discuss the burdensome tax on this week’s broadcast of Cross Examine, a biblical worldview television program from Coral Ridge Ministries. To watch the program or find TV station listings, click here.

Tackett and Rabe, co-hosts of Cross Examine, point out on the program that the inheritance or estate tax is not solely a political issue, but a biblical and ethical one.

“Scripture uses the word inheritance over 200 times,” said Tackett, known for his role as author and teacher of the Truth Project. “And when the Scripture does, it primarily is using the word inheritance in a very positive light, almost as if there’s something sacred about the inheritance. Furthermore, in Proverbs 13, it says that ‘a good man leaves an inheritance for his children’s children.’”

But Congress may soon let the inheritance tax jump back to 55 percent, which will crush the ability of families to pass on their wealth to the next generation. It permits the federal government to scoop up 55 percent of the value of a deceased person’s assets over $1 million.

For a real world example of the impact this could have on families and entire communities, Tackett visited with the Sukup family in Sheffield, a small town in Franklin County, Iowa. The Sukups own and run a manufacturing plant in the town of about 1,000 people. The operation is a big employer, providing jobs for many residents in the farming community. It is also the county’s largest employer.

“Each and every family that works out at Sukup’s, the Sukups puts dinner on their table everyday, and it’s their kindness and their business ethics that’s kept this community going for a long time,” states one Sheffield resident.

But Eugene Sukup, the entrepreneur who started the manufacturing business, is 81 years old. Health problems have caused him to be more vigilant in exposing the devastating impact the estate tax would have on his family and business. Sukup told a Senate Congressional Committee in Washington that the tax is “the greatest threat” to his business.

“Let’s suppose that you are one of these employees that the Sukup family has working for them, and you’re feeding your family based upon that,” Tackett explains. “If the estate tax then comes in and the [Sukup] sons have to sell this business in order to pay a very huge bill, then the business could go away, it could be sold off to a conglomerate somewhere else and closed, or they have to sell the parts and pieces to raise the money” to pay the federal tax.

Tackett said the estate tax comes from two notions: The first, that “the state can pretty much take whatever it wants as long as it’s somebody else’s; and the second, that the rich are the bad guys—that somehow if they have [wealth], it’s because they’ve taken from us.”

Cross Examine episodes, which look at issues in everyday life from a biblical perspective, may be viewed online at www.crossexamine.com. The website also provides a listing of TV outlets airing the program and features bonus biblical worldview teaching from co-host Del Tackett.



Anonymous Anonymous said:

On Tuesday, October 12, 2010 Los Angeles Council President Garcetti had to CANCEL the scheduled meeting due to Awaiting A Quorum again because Council members TONY CARDENAS, JANICE HAHN, and BILL ROSENDAHL did not bother to be in their seats at 10:00 a.m., as MANDATED BY THEIR OWN COUNCIL RULES.

October 12, 2010 11:06 AM  

Blogger Michael Higby said:

Jump Break appears not to be working at this moment. I apologize for the inconvenience.

October 12, 2010 11:06 AM  

Anonymous Anonymous said:

That's Obama taxing the working citizens of the United States of America and redistributing to the welfare recipients of America.

October 12, 2010 11:06 AM  

Blogger Michael Higby said:

Now it's working. :)

October 12, 2010 11:06 AM  

Blogger Michael Higby said:

Maybe 11:06 but this goes back farther than Obama. I believe both Clinton and Bush worked to reform death taxes but the Congress loves them.

October 12, 2010 11:09 AM  

Blogger Michael Higby said:

Ooops 1119 didn't catch your calling Joe and Red a name so I'm deleting you but its a good point. All MS bloggers should use jump break.

October 12, 2010 11:37 AM  

Anonymous Anonymous said:

Uh oh, Michael!

Someone called LeBonge "stupid" and another called him "LeBong."

Go jump in and spoil the fun.

October 12, 2010 11:54 AM  

Blogger Petra Fried in the City said:

Doesn't the "living will" bypass most estate taxes? As well as the ability to challenge the will?

Someone who knows more, please chime in.

October 12, 2010 12:01 PM  

Anonymous Anonymous said:

Phil Jennerjahn called me a "freedom hating liberal!"

Waaaaaaaaaaah, delete the comment!

October 12, 2010 12:03 PM  

Anonymous Anonymous said:


October 12, 2010 12:05 PM  

Anonymous Anonymous said:

Oh, so now Higby won't allow names, which have been his bread and butter since the get go?

This should work out interestingly. I give it three posts before the names are flying again, but Higby won't make it apply to everyone.

Read my lips!

October 12, 2010 12:17 PM  

Anonymous Anonymous said:

I hate to tell you this Higby, but while you're busy playing hall monitor, the blog that you're so jealous about posted a story about a publicity stunt that a band did on the 101 today, resulting in the arrest of the entire band.

See, when you sow bad seeds, you reap the misfortune of the regular, interesting stories that MS USED TO cover!

October 12, 2010 12:24 PM  

Anonymous Anonymous said:

This comment has been removed by a blog administrator.

October 12, 2010 12:35 PM  

Anonymous Anonymous said:

What a shrieking pantload.

85% of America's wealth is held by the 20% wealthiest Americans.

40% of Americans have NO wealth. Zero. No part of the wealth of America. Held by two of five Americans. They got bubkis. Nadda. Zip.

The rich are doing just fine. Unless you think that Paris Hilton is suffering.

October 12, 2010 12:49 PM  

Blogger Michael Higby said:

And those are the people who create the jobs.

Nothing wrong with being rich you state sponsored capitalist.

October 12, 2010 1:19 PM  

Blogger Michael Higby said:

FYI we're currently experiencing a furry meltdown. Please fasten your seatbelts.

October 12, 2010 1:36 PM  

Anonymous Anonymous said:

Both Warren Buffett and Bill Gates support the estate tax. They acknowledge the importance of the super rich in paying a hefty death tax to provide equity to the people.

The real problem is the alternative minimum tax applying to people who are decidedly middle class.

October 12, 2010 1:53 PM  

Blogger Petra Fried in the City said:

I meant Living Trust, and it doesn't help much with taxes:

"In the United States, a living trust refers to a trust that may be revocable by the trust creator or settlor (known by the IRS as the Grantor). Living trusts are often used because they may allow assets to be passed to heirs without going through the process of probate. Avoiding probate will normally save substantial costs (the probate courts, in some states, charge a fee based on a percentage net worth of the deceased), time, and maintain privacy (the probate records are available to the public, while distribution through a trust is private). Both living trusts and wills can also be used to plan for unforeseen circumstances such as incapacity or disability, by giving discretionary powers to the trustee or executor of the will.

The grantor/settlor may also serve as a trustee or co-trustee. In the case where two or more co-trustees serve, the trust instrument may provide that either trustee may act alone on behalf of the trust or require both co-trustees to act/sign. The trust instrument may also provide that the other co-trustee shall act as sole trustee if the grantor becomes incompetent and is unable to continue administering the trust.

There are also some negative aspects to a living trust in the United States. Beneficiaries do not save on federal estate or state inheritance taxes. Setting up a trust may be expensive, and the expense is immediate, not delayed till after the grantor's death. The legal drafting of the trust instrument, which creates the trust, usually costs much more than the legal drafting of a will. Trust administration can be more expensive than the administration of a will in the long run, as most state laws allow a fee of 1% of the estate's gross assets to be paid to the trustee for every year the trust is in existence. The fees for probate estate administration under a will are usually from 1% of the gross estate (for very large estates) to 4% of the gross estate (for very small estates), but this is a one-time fee, not yearly. The same one-time fees apply when a person dies without a will or a trust (dies Intestate): State laws require that an intestate probate be opened at the local courthouse, that the decedent's closest relatives be identified, located and notified, and that the decedent's real and personal property be collected, accounted, and distributed to said relatives...."

October 12, 2010 2:12 PM  

Anonymous Anonymous said:


Tell me what jobs Paris Hilton has created.

Besides for paparazzi.

Some of us do not want America to be ruled by a plutocracy. Get it?

October 12, 2010 3:53 PM  

Anonymous Anonymous said:

Why is Higby letting Petra Fried post here? Isn't that her blog slamming him and calling him white trash?

October 12, 2010 3:59 PM  

Anonymous Anonymous said:


There's no shame in not approving all the comments from the same person about how you run the blog and all the stuff about that. There's enough issue oriented dialogue here, today. 10 issue comments are better than 20 with 10 of them about the blog. Don't approve them. You know it's all the same person. No one else cares that much about the hoopla surround these blogs. People come to this blog and care about it for it's content.

October 12, 2010 4:59 PM  

Anonymous Anonymous said:


That's an impressive high road approach that I appreciate, but aren't blogs such as this measured by how many hits they have, even if half of them are naming calling?

October 12, 2010 5:32 PM  

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