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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (53513)	7/17/2006 11:09:15 PM
From: CalculatedRisk	Respond to of 116555

Budget analysis shows the tax change brought in more money - not less. It is obvious why. Homeowners with expensive homes didn't use to pay taxes - they deferred them until they died. After the homeowner died, the homes value would be stepped up (tax free) to the current market value. For most estates there would never be any taxes on the house appreciation. For those homeowners that moved down after age 55, they used the one time exemption. Now, with just moderately expensive homes, many homeowners have to pay some capital gains taxes when they sell. This has been a surprisingly huge contributor to the "not withheld" category of personal income tax for the last few years.