61–70 of 176 posts
If you taxed boomer-> millennial inheritances at just 25% you could completely eliminate the black-white wealth gap in the next couple of decades. There’s a reason that affluent white people are talking about DEI, and not raising our absurdly low inheritance taxes.
Meanwhile the estate tax in the US only applies to inheritances larger than $12.9 million. People with that kind of wealth also know how to start planning early to avoid the tax, so the tax is practically ineffectual. A fairer inheritance tax could go a long way to fixing the worsening wealth gap in America.
What’s the argument FOR an inheritance tax, when it comes to fairness? The person who’s passsing the money down already paid tax on the money, whether income tax or capital gains tax. The government already got a hefty chunk of that earned money. Why should it be taxed again? Especially when we see how inefficient the government is at spending money for the public good.
If they're passing down cash yes, but if they pass on assets like stocks or real estate, the cost basis gets stepped up to the fair market value at the time of death (in the US at least). So any capital gains accrued on those assets prior to the death of the person passing them on are just never taxed.
Earlier quoted context omitted.
What’s the argument FOR an inheritance tax, when it comes to fairness? The person who’s passsing the money down already paid tax on the money, whether income tax or capital gains tax. The government already got a hefty chunk of that earned money. Why should it be taxed again? Especially when we see how inefficient the government is at spending money for the public good.
The inheritors didn't earn it.
Earlier quoted context omitted.
What’s the argument FOR an inheritance tax, when it comes to fairness? The person who’s passsing the money down already paid tax on the money, whether income tax or capital gains tax. The government already got a hefty chunk of that earned money. Why should it be taxed again? Especially when we see how inefficient the government is at spending money for the public good.
> The person who’s passsing the money down already paid tax on the money. If they're passing down cash yes, but if they pass on assets like stocks or real estate, the cost basis gets stepped up to the fair market value at the time of death (in the US at least). So any capital gains accrued on those assets prior to the death of the person passing them on are just never taxed.
Earlier quoted context omitted.
What’s the argument FOR an inheritance tax, when it comes to fairness? The person who’s passsing the money down already paid tax on the money, whether income tax or capital gains tax. The government already got a hefty chunk of that earned money. Why should it be taxed again? Especially when we see how inefficient the government is at spending money for the public good.
> The person who’s passsing the money down already paid tax on the money Why should I pay sales tax? I already paid tax on the money as income tax. Why should I pay income tax on that money? That money was already taxed through payroll taxes before the employer paid me. Why should the employer pay payroll taxes on that money? They already paid income taxes on it. Why should companies pay income taxes on that money? T…
Earlier quoted context omitted.
What’s the argument FOR an inheritance tax, when it comes to fairness? The person who’s passsing the money down already paid tax on the money, whether income tax or capital gains tax. The government already got a hefty chunk of that earned money. Why should it be taxed again? Especially when we see how inefficient the government is at spending money for the public good.
Speaking in extreme generalities, the people in favour of taxes believe that there is only a tenuous link between improving society and getting paid money. That the state's view of what would be an improvement is superior to the view of wealthy individuals. Anyone being wealthy is somewhat suspect because they have claim on resources and the pro-tax types don't believe they can use those resource more effectively tha…
It’s not that they’re less effective, it’s that the public should get some say in how the money is used. I don’t want a small group of people single handedly deciding the “most effective” way for them to use their wealth, because it inevitably leads to whatever allows them to continue holding power.
I’d rather money be used less efficiently, but in the public’s interest, than in the interest of a few powerful people. No matter how philanthropic they appear.
I don’t trust the US govt much. But I trust them to spend money in a way that’s, say, 15% more democratic than the Koch brothers would. That’s good enough for me.
It is sort of interesting how Gen X is screwed here. Also the children of Gen X eg under 18s and younger Gen Z today.
Earlier quoted context omitted.
Speaking in extreme generalities, the people in favour of taxes believe that there is only a tenuous link between improving society and getting paid money. That the state's view of what would be an improvement is superior to the view of wealthy individuals. Anyone being wealthy is somewhat suspect because they have claim on resources and the pro-tax types don't believe they can use those resource more effectively tha…
Pro-tax type here, this quote is not accurate for me: “ pro-tax types don't believe [private entities] can use those resource more effectively than a government” It’s not that they’re less effective, it’s that the public should get some say in how the money is used. I don’t want a small group of people single handedly deciding the “most effective” way for them to use their wealth, because it inevitably leads to whate…
Society is better when we do. That’s why we should.
Earlier quoted context omitted.
What’s the argument FOR an inheritance tax, when it comes to fairness? The person who’s passsing the money down already paid tax on the money, whether income tax or capital gains tax. The government already got a hefty chunk of that earned money. Why should it be taxed again? Especially when we see how inefficient the government is at spending money for the public good.
> The person who’s passsing the money down already paid tax on the money Why should I pay sales tax? I already paid tax on the money as income tax. Why should I pay income tax on that money? That money was already taxed through payroll taxes before the employer paid me. Why should the employer pay payroll taxes on that money? They already paid income taxes on it. Why should companies pay income taxes on that money? T…
Earlier quoted context omitted.
What’s the argument FOR an inheritance tax, when it comes to fairness? The person who’s passsing the money down already paid tax on the money, whether income tax or capital gains tax. The government already got a hefty chunk of that earned money. Why should it be taxed again? Especially when we see how inefficient the government is at spending money for the public good.
The inheritors didn't earn it.