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No point. The very wealthy can find very good ways to avoid such taxes, e.g. through creating foundations, businesses, etc… I believe this is one of the reasons
by wsc981 8y ago
No point. The very wealthy can find very good ways to avoid such taxes, e.g. through creating foundations, businesses, etc… I believe this is one of the reasons why wealthy families often create some foundation.
It allows one to put their children on the payrol, keep money in the family and prevent any outsiders to gain access to this capital through marriage, etc… You could invest most of the money and spend a minor amount on charity each year, allowing the capital to grow and avoid paying taxes. Money donated to the foundation is in many countries tax free as well, so it's another nice way to avoid paying too much income tax.
- bayesian_horse 8y agoWhat you describe is the Trump Foundation to a T. Whose conduct has been called criminal...
- wsc981 8y agoI'm sure it not much different from the Clinton Foundation.
- benj111 8y agoFoundations are a tool to encourage the rich to 'donate' money though. Theres nothing in principle to stop the state from increasing the arm length that the foundation should be held at, although that may lead to a loss of 'charitable' donations. I'm not sure theres no point to taxes even if they're avoided. At the very least it sends a signal about what society finds acceptable.