Estate Taxes and Social Security – are the Dead People or Cash Piñatas?

Posted by PITHOCRATES - December 18th, 2010

The Lord Taketh Away.  And the Lord Giveth.

I sat in some construction meetings for a small church building a new nave.  I learned a few things about churches.  And construction.  First of all, church projects have a lot of alternates in their bid proposals.  Because they always want more than their budgets can pay for.  But they’re ever hopeful.  When they pass that basket around.  To add some of those alternates.  Even ask for donations during construction.  From the contractors building their new nave.  But the biggest thing I learned was the value of dead people.

This church had grandiose plans.  A pipe organ.  A light dimming system.  A sound system.  And some really nice (and expensive) chandeliers (they install some plain-Jane lights until they could afford the more spectacular lighting).  But, alas, they did not raise enough money to include all of these things.  And to make matters worse, they ran into some unexpected costs.  They had to make cuts.  Even some of the things that they had already approved.  The owner’s representative was not a happy camper.  He had to sit in a lot of meetings to reach a consensus on what to cut from the project.  But there was never any consensus.  Then, one day, he came to the construction meeting with a big smile on his face.

Someone had died.  And he was a parishioner.  A well-to-do parishioner.  The owner’s rep got a heads up on what the dead guy had bequeathed to the church.  And it was enough to not only keep the approved alternates.  But big enough to add a few other things.  And he smiled.

Death and Taxes – A Liberal’s Favorite Things

In all fairness to the church, they did a lot of charitable work in their community.  But there are other people who smile when old people die.  And they’re not helping the community as much as stuffing their pockets and the pockets of their friends.

Social Security is a great cash piñata for the government.  That’s why they are dead set against privatizing Social Security.  You see, it’s a numbers game.  Or racket.  Working people pay into a ‘retirement fund’ while they work.  Then when they retire, they get ‘benefit payments’.  And if you die the day after retiring, the government gets a big smile on their face.  Why?  Because they get to keep your ‘retirement fund’.  And that just wouldn’t happen if you had your retirement in a 401(k).

Private retirement investments (IRA, 401(k), insurance policy, etc.) are private property.  If you die before using those benefits, they go to your spouse, kids or other next of kin.  It’s your money.  And it stays in your family.  Well, some of it, at least.

When people use other investments other than the federal government, the government has other ways of getting your money when you die.  It’s called the estate tax.  The government sees the death tax as a statement of their generosity.  Instead of a 100% tax rate upon your death like with Social Security, it’s closer to 50% (depending on the current tax code).  Like George Harrison sang in Taxman, the government is basically telling us that we should just be thankful they’re not taking it all.

The Final Solution for Efficiency’s Sake

Liberal Democrats are obsessed with death.  To them it’s convenience and efficiency.  They like euthanasia.  They talk a lot about dignity at the end of life, but it’s also a great money saver.  As some sick and dying people can take a long time to die.  And Medicare and Medicaid pay for a lot them while they’re taking their time to die.  But euthanasia can change that.  And has.  In some of the more ‘bluer’ (i.e., liberal) states.

They like abortion, too.  They talk about it empowering women.  But is also a great money saver.  When unmarried teens get pregnant and they carry their baby to term, that baby will consume a lot of government benefits.  Of course, this is a double-edge sword.  The use of abortion (and birth control) has reduced the birthrate.  At a time the size of government has been expanding.  Which means there will be fewer taxpayers down the road to pay for that expanding government.

Of course, Obamacare brings it all home for the liberal Democrat.  The government will make healthcare a model of efficiency.  By deciding who should get treatment.  And who should get a pill to help them manage their pain.  Until they die.

Scary, isn’t it?  They deny it.  And they don’t use the word ‘death panels’ in the Obamacare legislation, but there are boards.  Who make healthcare decisions.  Based on cost.  And the only way to make healthcare more efficient is to spend less.  And you spend less when more sick and old people die.  And when it comes down to it, what is an old person?  Someone who is no longer a useful taxpayer.  But, instead, is a tax consumer.

And keeping them alive is just bad business when you’re in the business of life and death.

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