4 ms·

I'm pretty opposed to estate taxes, they tend to penalize sudden deaths really heavily and place unfair stress and complication on widows/widowers. Plus the rat

by patmcc 6y ago

I'm pretty opposed to estate taxes, they tend to penalize sudden deaths really heavily and place unfair stress and complication on widows/widowers. Plus the rates are sometimes high enough that they can lead to asset liquidation, selling of companies, etc. which I'm not a huge fan of. An annual wealth tax is much more sustainable for an individual or business.

tekknik 6y ago
How does an estate tax place undue complications on widows but a wealth tax doesn’t place undue complications on individuals?
- patmcc 6y ago
  Estate taxes are often on the order of ~20%+, so they can necessitate the sale of assets (real estate, companies, etc.) - and in the case of a sudden death, this can come at a very inopportune time, as well as being stressful on people who have just had a loved one die. An annual wealth tax of ~1% doesn't come with the same complications - just like income tax, it can be predicted, saved for, etc. Also most people with sizable estates (who have some idea they'll die in the next several years) can gift away or otherwise arrange to avoid estate taxes pretty successfully, so I don't think of them as especially useful. I don't worry about it too much since estate taxes are usually on quite large estates (>$5mil), but I just don't see it as a very good tax.
  - tekknik 6y ago
    This didn’t at all answer the question. You’ve basically said since it’s a static amount and because someone just died and also because it affects only large amounts it’s ok. None of this has anything to do with burden.
around_here 6y ago
Estate taxes almost always apply to estates valued at > $5m. Why anyone who isn't super rich would give two squirts boggles my mind, and it a symptom of the American "temporarily embarrassed millionaire" mindset. Sadly, the professional/managerial class seems to be wholly preoccupied with these fantasies.

by patmcc 6y ago

tekknik 6y ago

How does an estate tax place undue complications on widows but a wealth tax doesn’t place undue complications on individuals?

patmcc 6y ago
Estate taxes are often on the order of ~20%+, so they can necessitate the sale of assets (real estate, companies, etc.) - and in the case of a sudden death, this can come at a very inopportune time, as well as being stressful on people who have just had a loved one die. An annual wealth tax of ~1% doesn't come with the same complications - just like income tax, it can be predicted, saved for, etc. Also most people with sizable estates (who have some idea they'll die in the next several years) can gift away or otherwise arrange to avoid estate taxes pretty successfully, so I don't think of them as especially useful. I don't worry about it too much since estate taxes are usually on quite large estates (>$5mil), but I just don't see it as a very good tax.
- tekknik 6y ago
  This didn’t at all answer the question. You’ve basically said since it’s a static amount and because someone just died and also because it affects only large amounts it’s ok. None of this has anything to do with burden.

around_here 6y ago

Estate taxes almost always apply to estates valued at > $5m. Why anyone who isn't super rich would give two squirts boggles my mind, and it a symptom of the American "temporarily embarrassed millionaire" mindset. Sadly, the professional/managerial class seems to be wholly preoccupied with these fantasies.