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> Inheritance is a transfer of wealth, also known as income. Why should the people receiving that income get it tax free just because it came from a family memb

> Inheritance is a transfer of wealth, also known as income. Why should the people receiving that income get it tax free just because it came from a family member or close friend? Good point. The government also taxes the monetary value of any goods transferred. After all, if I were to grant my car to my children upon my passing, that is income and ought to be taxed. But let's continue even more. Whenever my mother-in-law provides childcare, the government should tax me for the money I would have spent on daycare. After all, that's giving me something with clear monetary value. Or when I visit my friend for a free dinner, I should have to pay tax on that too. Why not... it's all transfers of wealth.

slg 6y ago
>Good point. The government also taxes the monetary value of any goods transferred. After all, if I were to grant my car to my children upon my passing, that is income and ought to be taxed. If you win a car on a game show, you are taxed on that just like you would be if you won money. >But let's continue even more. Whenever my mother-in-law provides childcare, the government should tax me for the money I would have spent on daycare. After all, that's giving me something with clear monetary value. Or when I visit my friend for a free dinner, I should have to pay tax on that too. They are providing a service and not wealth or income. We don't directly tax the reception of services. However you can make an argument that this is the equivalent of providing a service at a pay of $0. I'm not sure if it applies nationally, but I know many states make exceptions for the minimum wage when working with direct family members. We don't tax people on money they were saved from spending or the excess value they receive by underpaying their employees.
tom_mellior 6y ago
> Whenever my mother-in-law provides childcare, the government should tax me for the money I would have spent on daycare. Rich people tend to have mothers-in-law who are well off and don't need to work for money, so have time for unpaid childcare and other care work. Poor people tend to have mothers-in-law who are less well off, need to work for money, and don't have as much time for unpaid care work. Poor people might therefore have to spend money on childcare that richer people get for free. This is one of the ways in which wealth begets wealth, and an example for how expensive it can be to be poor. This is an important societal issue, and it is good of you to call attention to it. Child care should be free (as in, financed by progressive taxes) everywhere, for everyone. The government should absolutely tax those who have more disposable income more than those who have less. It's simpler and more economically efficient (you are in favor of economic efficiency, I can tell) to do this based on general income and wealth levels than by sending inspectors everywhere to determine whether they "would" have spent money on daycare.
- tathougies 6y ago
  Nah... seeing my own poor family having my grandparents watch us, I think poor people are as or more likely to use family as childcare than the rich. And I think it would be immoral to tax them on these 'wealth transfers'. Anyway, according to https://www.nytimes.com/2015/12/18/upshot/rich-children-and-poor-ones-are-raised-very-differently.html https://www.nytimes.com/2015/12/18/upshot/rich-children-and-..., my hunch is indeed correct -- poor people are more likely to depend on family.

slg 6y ago

>Good point. The government also taxes the monetary value of any goods transferred. After all, if I were to grant my car to my children upon my passing, that is income and ought to be taxed. If you win a car on a game show, you are taxed on that just like you would be if you won money. >But let's continue even more. Whenever my mother-in-law provides childcare, the government should tax me for the money I would have spent on daycare. After all, that's giving me something with clear monetary value. Or when I visit my friend for a free dinner, I should have to pay tax on that too. They are providing a service and not wealth or income. We don't directly tax the reception of services. However you can make an argument that this is the equivalent of providing a service at a pay of $0. I'm not sure if it applies nationally, but I know many states make exceptions for the minimum wage when working with direct family members. We don't tax people on money they were saved from spending or the excess value they receive by underpaying their employees.

tom_mellior 6y ago

> Whenever my mother-in-law provides childcare, the government should tax me for the money I would have spent on daycare. Rich people tend to have mothers-in-law who are well off and don't need to work for money, so have time for unpaid childcare and other care work. Poor people tend to have mothers-in-law who are less well off, need to work for money, and don't have as much time for unpaid care work. Poor people might therefore have to spend money on childcare that richer people get for free. This is one of the ways in which wealth begets wealth, and an example for how expensive it can be to be poor. This is an important societal issue, and it is good of you to call attention to it. Child care should be free (as in, financed by progressive taxes) everywhere, for everyone. The government should absolutely tax those who have more disposable income more than those who have less. It's simpler and more economically efficient (you are in favor of economic efficiency, I can tell) to do this based on general income and wealth levels than by sending inspectors everywhere to determine whether they "would" have spent money on daycare.

tathougies 6y ago
Nah... seeing my own poor family having my grandparents watch us, I think poor people are as or more likely to use family as childcare than the rich. And I think it would be immoral to tax them on these 'wealth transfers'. Anyway, according to https://www.nytimes.com/2015/12/18/upshot/rich-children-and-poor-ones-are-raised-very-differently.html https://www.nytimes.com/2015/12/18/upshot/rich-children-and-..., my hunch is indeed correct -- poor people are more likely to depend on family.