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My Parents Give Me $28k a Year

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Re: My Parents Give Me $28k a Year

#101

Post by isostatic »

kcorbitt wrote: post #32
ntumlin wrote: post #21

Maybe this isn't the right place to ask, but could someone explain the rationale for taxing gifts within a family? Ignoring the possibility of using it to circumvent an income tax, etc., my initial thought is that if my dad wants to give me $30,001 this year, or even $300,000 this year, that he's already paid taxes on it and it's not the government's business. I feel the same way about inheritance taxes, although tho…

It's a fair question. Personally though, I come down on the exact opposite side of the question – all gifts should be highly taxed, with maybe a nominal tax-free allowance of a few thousand dollars. Making large gifts tax-free is just another big advantage that kids born to rich parents get over those born into less-fortunate circumstances. If we're in favor of equality of opportunity (and almost everyone claims to b…

It's not just rich kids that benefit, and it's not just direct gifts that benefit.

If your parents live within commuting distance of London, you can probably take a very low paid job to get a rung on the ladder. Very few outgoings - no rent, no bills. £600/month for season ticket and nights out, and even on minimum wage you'll be saving £5k a year.

If your parents live in say Devon or Yorkshire, you can't do that. You'll be paying £1k a month just for rent.

Re: My Parents Give Me $28k a Year

#102

Post by kethinov »

soared wrote: post #71

Does anyone have recommendations on how to overcome the resentment I feel against people like the author? I am jealous and frustrated by their advantage, but that opinion is purely negative and doesn't help me at all.

Maybe the resentment (not at her personally, but at the aggregate exploitation her class exacts on those beneath) is a legitimate feeling you should not overcome but instead express at the ballot box.

Re: My Parents Give Me $28k a Year

#103

Post by merpnderp »

DoreenMichele wrote: post #63

Plus, the parents apparently paid at least $250k in college tuition for her. So she has world class education, zero debt from it, and then this stipend on top of that . The stipend wouldn't go anywhere near as far if she were saddled with crushing student loans. I come from a more privileged background than I realized and that included better educational opportunities. I was in gifted programs as early as second grad…

And yet if you even dare to open up the argument that government should try to encourage the types of families and behavior that show the best results for this type of childhood, you'll immediately be drowned out in ad hominem attacks. Even Obama took a lot of heat for saying dad's should help raise their kids. Never mind more seriously statically relevant approaches like waiting until after high school and marriage to have kids.

Re: My Parents Give Me $28k a Year

#104

Post by kevinskii »

rtkwe wrote: post #70
underpand wrote: post #51

I disagree with her premise that the government should fund people to have fulfilling creative careers. That's not how the world works. Creative outputs generally do not have 'efficienciecy' increases like other fields. Creative outputs are zero sum: people only have a constant amount of time to use to consume creative outputs and consumption time has already been saturated. Efficiency upgrades for entertainment are…

I disagree heavily with this. There's been a lot of improvement in the quality and variety of entertainment too over the years not just the technology used to deliver them. If restricted to media from say mid century America post TV most people would be bored stiff by the material available. It's REALLY easy to wind up with a dismissive attitude towards the arts growing up and working in tech but never forget how muc…

One can both appreciate the arts and believe that taxpayers shouldn’t be subsidizing arts careers.

Re: My Parents Give Me $28k a Year

#105

Post by isostatic »

intopieces wrote: post #9
kevin_thibedeau wrote: post #8

> I get an annual gift of $28,000, distributed, in my case, in monthly checks mailed to my house for $2000 and $334 (to make it easier to deposit remotely), completely tax free. Why would this be necessary? The IRS knows this money is being distributed. What difference does it make if it comes as an annual lump sum?

I'm not sure, but I think $2000 is the maximum amount she can deposit as a check using her bank's app. In this case, "remotely" meaning she doesn't have to go to an ATM or bank teller. As for not giving it all in $28k, I don't think this is an IRS issue, but a personal preference of the benefactors.

I don't understand why they don't just set up a standing order.

And I'm sure I'm not the only one with a twich about having a $2000 cheque and a $334 check, rather than 2 cheques of $1167

Re: My Parents Give Me $28k a Year

#106

Post by JoeAltmaier »

mmcconnell1618 wrote: post #99
isostatic wrote: post #89

Earlier quoted context omitted.

> Could you explain the rationale for excluding such unearned income, other than privileging generational wealth against wealth earned by personal work and investment? If I buy a round of drinks, do people have to pay tax? (I assume there's some minimum threshold)

I'm fairly certain the United States Internal Revenue Service would consider the drinks received by others as income they should technically report on their taxes. For practical purposes, I suspect that almost no one ever does report this type of gift, but yes, technically it would qualify. If I give someone $5 for their birthday, they should report it but won't. If I give them $50,000 for their birthday, they better…

Gifts < $14K not necessary to report

Re: My Parents Give Me $28k a Year

#108

Post by DoreenMichele »

zxcvvcxz wrote: post #91
DoreenMichele wrote: post #87

Earlier quoted context omitted.

Yes, obviously, we should strive to not improve anything. Having the occasional bright spot punctuating the gloom of history is such a waste of time. /s

How about maintaining some sense of balance, responsibility, and austerity in our societies, instead of forever marching towards a fictional leisure-filled utopia?

in order to give their children a right to study painting, poetry, music, architecture, statuary, tapestry, and porcelain.

As far as I can tell, you are the only one inferring that studying architecture and similar civilized topics equates to leisure and irresponsibility. That doesn't make sense to my mind. Here's my context for such remarks:

My dad grew up in the Great Depression. He fought in two wars. He was awarded a purple heart. My mother grew up in Germany during WW2 and its aftermath.

They raised me well with values like eating well matters and petty conflicts aren't worth being grudging over. I spent nearly 6 years camping -- aka homeless -- to get myself healthier while the world heaped verbal abuse upon me for it and called me a liar and crazy.

My dream job is in the urban planning and economic development sphere. Among other things, I would love to help artists and writers and others figure out how to monetize their work and live well, even if they don't make scads of money. I would like to help homeless people access an earned income.

Before my life was derailed, I was a military wife and homeschooling parent. I would like to return to that kind of role, but on a larger scale. I would like to help raise up the region wherein I live.

Perhaps I shall figure out how to pull that off. I don't imagine it will involve a lot of leisure, though it will be the antithesis of war, even the antidote to it. Though I assume you won't see what I see there. Peace is not merely the absence of conflict. Trying to put it into words tends to be elusive.

I continue to be largely dismissed, not given support, have doors slammed in my face, etc. I also run multiple websites with useful info for people with big problems. Once in a while, someone kicks a few bucks my way and I get a smidgen of Patreon support.

So perhaps it can be grown. Perhaps this small candle I've lit in the dark void of my life can become a bonfire for others less fortunate than I am whose parents didn't similarly arm them for the battle ahead in life.

Re: My Parents Give Me $28k a Year

#109

Post by nicoburns »

paulddraper wrote: post #80
astrodust wrote: post #26

Earlier quoted context omitted.

At low levels, which aren't taxed, it's not going to affect anything. At high levels, like giving your kid ten billion dollars, you're making it impractical or impossible for others to advance economically. You're creating a class of people with indestructible inherited wealth that never have to work, that only have to collect interest and rent on the backs of everyone else. That's what inheritance tax and gift taxes…

> like giving your kid ten billion dollars, you're making it impractical or impossible for others to advance economically. Zero-sum is one perspective, but not one that I subscribe to. Does your neighbor having $10b of stuff make you better or worse off than if than if there's $10b of stuff at the bottom of the ocean?

No, but other people having $10bn of disposable income increases prices for you. Or if you look over the long term, skews the economy towards producing luxury goods rather than meeting the basic needs of ordinary people.

Re: My Parents Give Me $28k a Year

#110

Post by dragonwriter »

isostatic wrote: post #89
dragonwriter wrote: post #35

Earlier quoted context omitted.

> Maybe this isn't the right place to ask, but could someone explain the rationale for taxing gifts within a family? Could you explain the rationale for excluding such unearned income, other than privileging generational wealth against wealth earned by personal work and investment? > Ignoring the possibility of using it to circumvent an income tax, etc., my initial thought is that if my dad wants to give me $30,001 t…

> Could you explain the rationale for excluding such unearned income, other than privileging generational wealth against wealth earned by personal work and investment? If I buy a round of drinks, do people have to pay tax? (I assume there's some minimum threshold)

> If I buy a round of drinks, do people have to pay tax?

Ideally, probably, but even in a system which tries to mitigate the advantage of generational wealth created by the current favorable regime of gift and inheritance tax by a purer income tax, the friction of taxing de minimis personal gifts as income to recipients is something you probably want to avoid.

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