Fixing America

[acbytesla]

A friend of mine rented a place in Tuxedo Park, which was one of the first gated communities in the USA. The word "tuxedo" comes from there and apparently it was quite swanky back in the 1920s-1940s, but by 1980s when I visited, it was pretty tired. Looking it up now, there are some real mansions, but apparently the median home price is only about $900K, which in the NY metro area means pretty cheap.

Interesting. Is it still a gated community? Some gated communities have discovered they can be more difficult than they are worth. I can think of maybe 4 in the Seattle area.

The Highlands isn't the richest neighborhood in the Seattle Metro area any more. Still amazing though.

That title probably goes to Medina or Hunts Point on the East side of Lake Washington. Those communites aren't gated, but a lot of the homes are. Bill Gates and Bezos both live there.

 

[Mike!]

You're about to undergo delicate surgery and your doctor can choose one of the following three tool kits:

1) Anesthetic, a scalpel, a needle and suture.

2) A hammer, a hacksaw, and a staple gun.

3) A cigarette, a blindfold, and a wrecking ball.

Which would you prefer they use?

 

[TragicMonkey]

You're about to undergo delicate surgery and your doctor can choose one of the following three tool kits:

1) Anesthetic, a scalpel, a needle and suture.

2) A hammer, a hacksaw, and a staple gun.

3) A cigarette, a blindfold, and a wrecking ball.

Which would you prefer they use?

Trick question! You're on Medicare and that's been cut to allow a further tax break for billionaires, so you aren't getting surgery at all!

 

[Thermal]

You're about to undergo delicate surgery and your doctor can choose one of the following three tool kits:

1) Anesthetic, a scalpel, a needle and suture.

2) A hammer, a hacksaw, and a staple gun.

3) A cigarette, a blindfold, and a wrecking ball.

Which would you prefer they use?

Ummmmmm.... I'd prefer a whole lot more than any of these, like exponentially more, but at the least problematic, I'd get my affairs in order and try #!?

Did that fix America?

 

[Thermal]

Trick question! You're on Medicare and that's been cut to allow a further tax break for billionaires, so you aren't getting surgery at all!

*Luigi locks and loads*

 

[Planigale]

You're about to undergo delicate surgery and your doctor can choose one of the following three tool kits:

1) Anesthetic, a scalpel, a needle and suture.

2) A hammer, a hacksaw, and a staple gun.

3) A cigarette, a blindfold, and a wrecking ball.

Which would you prefer they use?

FYI nowadays we tend to staple rather than suture incisions at operation. So assuming you are having an orthopaedic operation 2) is the correct answer!

 

[Mike!]

FYI nowadays we tend to staple rather than suture incisions at operation. So assuming you are having an orthopaedic operation 2) is the correct answer!

I'm well aware of the staples, that's why I picked it, but are you sure you want the hammer anesthetic? It's a package deal after all.

 

[acbytesla]

You're about to undergo delicate surgery and your doctor can choose one of the following three tool kits:

1) Anesthetic, a scalpel, a needle and suture.

2) A hammer, a hacksaw, and a staple gun.

3) A cigarette, a blindfold, and a wrecking ball.

Which would you prefer they use?

Interesting question.....maybe? I'm assuming there is a punchline or some kind of point. Is there?

 

[Solitaire]

If you think I'm wrong about the tax exemption, please tell me what you think I'm missing.

I've thought about it. Deduct the original amount of the home plus the cost of any improvements adjusted for inflation and tax any capital gains above that amount, probably at a reduced rate to regular taxation.

PS: Oh... If you inherit a home then the base rate resets to value at the time you inherit it. Yes, I think that would be fair.

 

[acbytesla]

I've thought about it. Deduct the original amount of the home plus the cost of any improvements adjusted for inflation and tax any capital gains above that amount, probably at a reduced rate to regular taxation.

PS: Oh... If you inherit a home then the base rate resets to value at the time you inherit it. Yes, I think that would be fair.

That's a pretty good solution I think. But I would modify it some. Make it only available to someone who owns only a single residence.

 

[theprestige]

I've thought about it. Deduct the original amount of the home plus the cost of any improvements adjusted for inflation and tax any capital gains above that amount, probably at a reduced rate to regular taxation.

PS: Oh... If you inherit a home then the base rate resets to value at the time you inherit it. Yes, I think that would be fair.

My family and my partner's family both lost our familial homes, due to crippling tax increases upon inheritance. Now they're in the hands of Silicon Valley speculators, rather than the grandchildren whose childhood memories are imprinted there.

 

[acbytesla]

My family and my partner's family both lost our familial homes, due to crippling tax increases upon inheritance. Now they're in the hands of Silicon Valley speculators, rather than the grandchildren whose childhood memories are imprinted there.

Crippling taxes? Surely ye jest. Estates don't even become taxable until they reach 13.99 million dollars.

 

[Thermal]

Crippling taxes? Surely ye jest. Estates don't even become taxable until they reach 13.99 million dollars.

That's the Feds. Some States are notorious for their Inheritance/Death taxes.

Eta: In my fair NJ, for instance, the state has its hand out if you inherit anything starting at just 500 lousy dollars.

Oh, and you have to pony up before you could even sell the property to get free of the burden. That means you owe the cash immediately on an as yet unrealized gains

 

[acbytesla]

That's the Feds. Some States are notorious for their Inheritance/Death taxes.

Eta: In my fair NJ, for instance, the state has its hand out if you inherit anything starting at just 500 lousy dollars.

Oh, and you have to pony up before you could even sell the property to get free of the burden. That means you owe the cash immediately on an as yet unrealized gains

Interesting. As someone who didn't inherit anything but my name, it is hard to be sympathetic to those that complain about these kind of taxes. But I get it. Everyone hates taxes.

 

[Norman Alexander]

My family and my partner's family both lost our familial homes, due to crippling tax increases upon inheritance. Now they're in the hands of Silicon Valley speculators, rather than the grandchildren whose childhood memories are imprinted there.

Are these properties actually in Silicon Valley? That is, California? And was it some time ago?

Overview of California Inheritance Tax​

In California, there is no state inheritance tax. This means that when you inherit assets from a deceased person, you do not owe any tax to the state of California on those inherited assets. This can simplify the process of inheriting property and other assets significantly.

California used to have its own inheritance tax, but it was abolished in 1982. Since then, residents of California only need to consider federal estate taxes and other related tax implications, not a state inheritance tax.

Federal Inheritance Tax​

While California does not impose an inheritance tax, the federal government does have an estate tax that applies to large estates. For 2024, the federal estate tax exemption is $12.92 million per individual. Estates valued above this threshold may be subject to federal estate taxes, which the estate itself pays before distribution to the beneficiaries.

 

[acbytesla]

Are these properties actually in Silicon Valley? That is, California? And was it some time ago?

According to my search the Federal Estate tax exemption is at 13.99 million for 2025. But that level of Estate tax exemption sunsets this year. It will drop down to 7.5 million unless the new administration changes that.

Washington State taxes estates above 2.193 million dollars from 10 to 20%. Below that, it is entirely tax exempt.

I believe Prestige lives in Oregon. For the 2024 tax year, the Oregon estate tax rates range from 10% to 16% on anything above the $1 million dollar threshold. So if that is where the Estate was, it is easy to see why the property needed to be sold. Still, most estates sell the property because there are multiple heirs and it's difficult to split up the Estate without selling the property.

 

[Mike!]

Interesting question.....maybe? I'm assuming there is a punchline or some kind of point. Is there

Interesting question.....maybe? I'm assuming there is a punchline or some kind of point. Is there?

Just thinking about how things are presently being done to wreck stuff, and if there could be an obviously better way.

 

[Ziggurat]

There are lots of problems that need to be addressed. There always are and there always will be. But I'm convinced addressing one of them will go a long ways in addressing many of them. That problem is affordable housing.

You know, I actually agree. This is a major structural problem, and not just in the US.

I know, easier said than done. But it's a lot easier than people think.

The economics are fairly easy. The politics are almost impossible. Existing home owners are an incredibly powerful voting block, and they do not want their property values to decrease. And future residents don't get a vote now.

Things might change as the baby boomers start to die off.

 

[Ziggurat]

Henry Ford understood this basic principle. He paid his workers well not out of altruism but because he understood that it would help expand the market place for Ford cars, increasing the economies of scale and increasing profits

No, he did not. No matter how much you pay, you can't break even on your workers buying your product, that's the economic equivalent of perpetual motion.

Ford said that a general increased in wages would increase the market for products, but he couldn't do that himself, and it's not why he increased wages for his workers. He increased wages because that decreased worker turnover, and decreased turnover increased productivity.

 

[acbytesla]

You know, I actually agree. This is a major structural problem, and not just in the US.

The economics are fairly easy. The politics are almost impossible. Existing home owners are an incredibly powerful voting block, and they do not want their property values to decrease. And future residents don't get a vote now.

Things might change as the baby boomers start to die off.

Yep.

Out of curiosity, is us agreeing the 7th Sign?