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<DIV><FONT face=Arial size=2>I believe you are wrong about this but I will call
Clark Howard on the radio and find out for sure. In listening to him and others
you can give 11 thou to someone mark it clearly as a 'gift' and you do not pay
taxes on it. I have heard Bob Brinker say the same thing but I will call or
email them and find out for sure. </FONT></DIV>
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<DIV style="FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black"><B>From:</B>
<A title=sdredge@yahoo.com href="mailto:sdredge@yahoo.com">Scott Dredge</A>
</DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A title=vision2020@moscow.com
href="mailto:vision2020@moscow.com">viz</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Wednesday, February 21, 2007 1:50
PM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> Re: [Vision2020] House Passes
Bill Linking Tax Cuts, Minimum Wage</DIV>
<DIV><BR></DIV>
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style="FONT-SIZE: 12pt; FONT-FAMILY: times new roman, new york, times, serif">
<DIV
style="FONT-SIZE: 12pt; FONT-FAMILY: times new roman,new york,times,serif">---
Donovan Arnold wrote ---
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style="FONT-SIZE: 12pt; FONT-FAMILY: times new roman,new york,times,serif">
<DIV>> Many people donate money to family members so that don't
have<BR>> to pay as high of taxes. For example, if you make $100,000,
give<BR>> $10K away to three children over age 18, that puts you in the
70K<BR>> bracket instead. Why do that? If you are single and make
over $100K<BR>> the government takes more than if you make $70K, like most
of everything<BR>> between $70-100K goes to the government, about 95% of
that. I know<BR>> other family members give away wealth while they are
living in order to<BR>> avoid the 50% estate tax their relatives would have
to pay if they got it after they died.<BR><BR>I don't believe any of this is
correct Donovan. You can give anyone $10k per year (or maybe it's
a little more nowadays like $11k although I would need to look this up) and
they would not be required to pay taxes on that money. You would not be
allowed to deduct this from your income, so you would still pay income tax on
this money.<BR><BR>The 2006 tax rate for a single filer for income earned
above $75k is taxed at a rate of 28% (federal). How do you get 95% going
to the government?<BR><BR>As far as estate taxes go, in 2006 I believe the
first $2,000,000 of an estate passing to a non-spouse is exempt from federal
taxes. I'm not up on the latest laws in estate planning, but a good
estate planner would know all the exemptions and recommended stategies of
breaking down your estate to take advantage of estate tax
laws.<BR><BR>-Scott<BR></DIV>
<DIV> </DIV><BR></DIV><BR></DIV></DIV>
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