51–60 of 176 posts
Earlier quoted context omitted.
The inheritors didn't earn it.
So?
In Russia, if you are born in Moscow and inherit a granny's flat¥, it gives you an enormous boost. You are free to choose any occupation and dabble in any kind of weird lifestyles or rent it out and live abroad with very modest effort. Meanwhile, if you did not inherit one and don't work in IT, expect to work hard and spend the majority of earnings on rent/mortgage. This applies nontheless even if all of your ancesto…
That is kind of outdated for Russia. Many new buildings, salaries increased. Rent is reasonable with cheap energy. And metro goes everywhere.
Indeed, the great amount of constructions works to limit this effect.
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.
From that perspective, the handover of assets that happens during an inheritance is a great time for a tax - they don't believe that the inheritee will use the money to improve the world, they don't believe that the deceased was making optimum use of those funds and so this is an opportunity to level the playing field for the next generation and redirect assets to a more fundamentally wise and fair state.
I don't agree with that view (the USSR alone, let alone all the other attempts...) but it is internally consistent.
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.
- Income tax: 49.5% (36.93% on income under €73k)
- Inheritance tax: 40% (30% for inheritance under €138k)
- VAT: 21%
Thus, poor people pay 65% tax and rich 76% in such a scenario.
Earlier quoted context omitted.
No. Once you die and transfer the assets to your children, the cost basis gets reset.
But isn’t the inheritance tax (for everything over $12 mil until 2026) even larger than the capital gains tax? And it applies to the whole value, not only the increase in value.
https://www.financialsamurai.com/how-do-millionaires-and-bil...
Earlier quoted context omitted.
It's not clear to me there needs to be any exemption at all on inheritances. It should all be taxable income IMO. Poor people having their inheritances taxed will just get it back later in enhanced government benefits. More in fact since rich people have way larger inheritances to tax. Another huge loophole is charitable deductions. There's absolutely no reason the government needs to be helping fund individual chari…
So you slave away your younger years and pay ~40%+ income tax. You manage to afford 2 children and own a nice house outright by the time you're 65. You have a nest egg large enough to afford a high quality life in retirement (mostly to pay your property taxes & income taxes & capital gains on inflation [not even REAL capital gains]...) You die with $1M to your name plus a $1M estate (this is top ~6% or so). Now you w…
Yes, or spend it…
I’ve met too many people who are quite concerned about their parent’s wealth and spending later in life, and it seems to become more concerning for the kids once their parents become closer to death.
I believe, as a rule of thumb, dynastic wealth is bad for society at large and encourages a rise in rentiers and other parasitic behaviors.
> But also, that brings your effective tax rate for your life at close to ~66%…
Such an odd concept: the tax rate of all income you have had over the span of your life. Once you’re dead, you no longer ‘own’ anything. It belongs to your estate, and whoever owns that estate is the person who is taxed.
Earlier quoted context omitted.
That is kind of outdated for Russia. Many new buildings, salaries increased. Rent is reasonable with cheap energy. And metro goes everywhere.
Problem being, any wage growth in Moscow caused prices to appreciate, because real estate is most/only reliable vehiche for long term worth storage in middle class. If you have spare cash, you buy an apartment. Indeed, the great amount of constructions works to limit this effect.
Russians can invest in foreign stock markets etc... It is not like in China or Korea.
Price rise you see is normal growth.
Earlier quoted context omitted.
So you slave away your younger years and pay ~40%+ income tax. You manage to afford 2 children and own a nice house outright by the time you're 65. You have a nest egg large enough to afford a high quality life in retirement (mostly to pay your property taxes & income taxes & capital gains on inflation [not even REAL capital gains]...) You die with $1M to your name plus a $1M estate (this is top ~6% or so). Now you w…
So don't save up $2 million for inheritance... No one is forcing you to do that. Not to mention the increased taxes will be paid back, at least to some extent, in enhanced services. Maybe your kids could get a free education and free healthcare instead of $1M each in inheritance. Or instead of increased services, we could tax other things less such as the income of living people. I'd much rather have dead people, who…
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.
Gen X has always been screwed. There's never been enough of us to matter demographically. The boomers have us boxed in before us, and Gen-Y/Millenials after.
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.