The Motley Fool Discussion Boards
Investing/Strategies / Retirement Investing
|Subject: Re: Estate / death taxes: was my grandfather foo||Date: 4/14/2008 1:46 PM|
|Author: intercst||Number: 62261 of 77100|
In 2006 she had to change filing status from MFJ to single. In so doing, her tax bracket jumped from 15% to 25% despite losing that income from the second SS check. And to add insult to injury, it meant that 85% of her smaller SS benefit was taxable instead of 50% of a larger combined benefit when filing MFJ. And she lost a personal exemption and half the standard deeduction.
So despite seeing income drop from about $56K to $48K from 2005 to 2006, her taxes rose from about $3,500 to about $7,500 in one year...all because she lost her husband of more than 49 years.
That's a "death tax" that really hits the middle class and below.
Heck, I've been paying at the single rates for years. We could stop all the complaining by taxing married people at the same rate as singles. We'll need the added revenue to pay the interest on all the money Bush borrowed over the past 7 years.
|Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|