4 ms·

Do you think inheritance tax eventually captures a lot of this passive income?

HockeyPlayer 9y ago
Gary Cohn (Trump's chief economic advisor) recently said, "Only ‘Morons’ Pay the Estate Tax" : http://nymag.com/daily/intelligencer/2017/08/gary-cohn-only-morons-pay-the-estate-tax.html" http://nymag.com/daily/intelligencer/2017/08/gary-cohn-only-...
nemo44x 9y ago
Federal inheritance tax is levied on 0.2% of the US population. It doesn't apply until you leave behind about $5.45 million dollars. If I was a politician I would leave it alone and let states deal with it. I think most people that are against the "death tax" know it won't affect them but it's the idea that income that was taxed is now being taxed again. The emotional appeal of leaving a better life for those you love, etc. So, I'd get rid of it. It's insignificant. It accounts for about .5% of total Federal revenue. Easy sacrifice.
- QAPereo 9y ago
  It’s also not that useful at getting revenue, compared to costs of administration.
- nodamage 9y ago
  Not to mention it is $10.9 million for married couples. How many people are leaving that much money behind?
  - nemo44x 9y ago
    0.2% of the population of the USA.
- tankerdude 9y ago
  No. 0.5% of a huge number is a still a very large number. $4T in income tax revenue so 0.5% is $20B. That's about the size of NASA. Percentages are horrible at that. Keep the "death" tax, and here's the thing. Due to death, the assets changed hands. That money wasn't yours. It was your parent's money, so this is the first time that you are acknowledging the income. You personally won't get taxed on it again. Same with dividends and other stock related taxes No recognized income from you personally until you get the money. That's when you get taxed, pure and simple.
  - winter_blue 9y ago
    If a person's parents already paid taxes on it when they earned it, why are they required to pay taxes on it again? It's double taxation, and it's utterly unfair.
    - bbatha 9y ago
      > If a business already paid taxes on it when they earned it, why are they required to pay taxes on it again? It's double taxation, and it's utterly unfair. > If the customer already paid taxes on it when they bought it, why business required to pay taxes on it [that income] again? It's double taxation, and it's utterly unfair. Double taxation arguments are like mad libs you can pick any two parties in a taxed transaction and make the same argument. Pretty much every other kind of transaction is taxed. Yet the other places we tax, income and sales, generate healthy economic activity (labor, wealth, and consumption). Unlike inheritance which has little more than net 0 impact on the economy.

Gary Cohn (Trump's chief economic advisor) recently said, "Only ‘Morons’ Pay the Estate Tax" : http://nymag.com/daily/intelligencer/2017/08/gary-cohn-only-morons-pay-the-estate-tax.html" http://nymag.com/daily/intelligencer/2017/08/gary-cohn-only-...

nemo44x 9y ago

Federal inheritance tax is levied on 0.2% of the US population. It doesn't apply until you leave behind about $5.45 million dollars. If I was a politician I would leave it alone and let states deal with it. I think most people that are against the "death tax" know it won't affect them but it's the idea that income that was taxed is now being taxed again. The emotional appeal of leaving a better life for those you love, etc. So, I'd get rid of it. It's insignificant. It accounts for about .5% of total Federal revenue. Easy sacrifice.

QAPereo 9y ago
It’s also not that useful at getting revenue, compared to costs of administration.
nodamage 9y ago
Not to mention it is $10.9 million for married couples. How many people are leaving that much money behind?
- nemo44x 9y ago
  0.2% of the population of the USA.
tankerdude 9y ago
No. 0.5% of a huge number is a still a very large number. $4T in income tax revenue so 0.5% is $20B. That's about the size of NASA. Percentages are horrible at that. Keep the "death" tax, and here's the thing. Due to death, the assets changed hands. That money wasn't yours. It was your parent's money, so this is the first time that you are acknowledging the income. You personally won't get taxed on it again. Same with dividends and other stock related taxes No recognized income from you personally until you get the money. That's when you get taxed, pure and simple.
- winter_blue 9y ago
  If a person's parents already paid taxes on it when they earned it, why are they required to pay taxes on it again? It's double taxation, and it's utterly unfair.
  - bbatha 9y ago
    > If a business already paid taxes on it when they earned it, why are they required to pay taxes on it again? It's double taxation, and it's utterly unfair. > If the customer already paid taxes on it when they bought it, why business required to pay taxes on it [that income] again? It's double taxation, and it's utterly unfair. Double taxation arguments are like mad libs you can pick any two parties in a taxed transaction and make the same argument. Pretty much every other kind of transaction is taxed. Yet the other places we tax, income and sales, generate healthy economic activity (labor, wealth, and consumption). Unlike inheritance which has little more than net 0 impact on the economy.