141–150 of 176 posts
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Again: DEI's most vocal opponents are the ones legislatively blocking any reform to inheritance taxes; in fact, they're attempting to repeal the Estate Tax altogether, as they have been since the 1990s, when the effort was a plot point on The West Wing. There is no reasonable connection to draw between DEI and a resistance to taxing generational wealth.
The most vocal opponents of DEI are working class white people—who are indispensable to any liberal coalition worth the label. They are not trying to repeal the estate tax.
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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.
There a meritocracy argument in favor of inheritance tax. Those inheriting did not earn that wealth, therefore they should not receive it. Maybe instead there could be a lottery. Any wealth over some threshold (say $10M) is divided into $100k prizes and awarded to random citizens like a lottery.
It's not the parent's estate that should be taxed. They have indeed earned all the money fair and square, and should be able to pass it on as they see fit.
Instead, let's think about a tax on receiving inheritances. Limiting the money hose where the inequality actually happens, at the person that hasn't worked for the money and through pure happenstance comes into riches while others are not getting remotely equal opportunities. That person should be the one to consider when proposing an inheritance tax.
Maybe a lifetime tax-free limit on receiving inheritances, cumulatively, from any source.
[Edit: This way, we can also elegantly solve the "can't pass down the family business" problem: Allow the inheritance tax to be paid in long-term installments by the recipient, with interest, allowing the inheriting child to keep the asset but make them work for part of the value they got out of it. Remaining tax debt at the time of the child's death would be due immediately at the time of their own death.]
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> 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…
For me, this comment just highlights how egregious taxation already is.
This is a middle ground between communism and capitalism and seems to be what works best in practice. Or you could call it market socialism (though that's leaning more into socialist direction).
Unregulated, un-taxed markets do not do that. They support exploitation and extraction (at the extremes).
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Getting a leg up in life because your parents left you a big inheritance, is unfair to those who don't. There are many different types of fairness, not just one.
This is one of the silliest comments I’ve read on HN: it’s not fair to have successful parents that love you, therefore the government must step in and fix that.
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.
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For me, this comment just highlights how egregious taxation already is.
You're forgetting that what we [should] optimize for is the general welfare of the population (based on human moral code). Taxes are just one way to redistribute [some] gains that are lopsidedly awarded by the market, since in certain cases we do not want winner-take-all behavior (but instead to optimize the welfare of the many). This is a middle ground between communism and capitalism and seems to be what works best…
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Forgive my ignorance, but I see 2 possible scenarios for the assets to be passed on to the heirs: - simply transfer possession - in this case, there is no realised gains, so no need to charge taxes. they can be charged when the gains are eventually realised. - realise the gains and transfer the money - in this case, tax is charged on the realisation of the gains. What have I missed?
I don’t know anything about taxes and stuff but in > simply transfer possession - in this case, there is no realised gains, aren’t the inheritors gaining wealth they did not have before?
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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…
I’m on your side as well. These arguments are rarely in good faith but when they are I think it’s possible to write a succinct answer. Society is better when we do. That’s why we should.
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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.
Getting a leg up in life because your parents left you a big inheritance, is unfair to those who don't. There are many different types of fairness, not just one.