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I think that’s exactly what the parent commenter is saying, but I don’t think it is wrong to discuss per se. Consider 3 people: - Morgan. Worked 80 hour weeks

I think that’s exactly what the parent commenter is saying, but I don’t think it is wrong to discuss per se. Consider 3 people: - Morgan. Worked 80 hour weeks for 40 years developing treatments for childhood cancer. Runs a charity supporting orphanages in their free time. Net worth: 8 million, income: 1 million - Sam. Started the largest pornography empire in the world and works as the CEO. Accused of child sex trafficking on multiple occasions, but no proof. Net worth: 8 million, income: 1 million - Jordan. Their great grandparents started a mining company and they inherited a trust fund. Never worked in their life. Net worth: 8 million, income: 1 million I’m willing to bet people would have value judgements on how much each person should pay in taxes. People do tie moral, emotional, or ethical considerations to what they consider fair. I personally believe these three people should be taxed almost the same, as the value judgements should have an impact elsewhere. I think estate/wealth taxes would be the only case where there should be a divergence, as they would only apply to the third person. What do you think?

dlp211 6y ago
We are a nation of laws, not men. Everyone should be treated the same under the law. Every person in your example should pay the same amount of tax.
- profile53 6y ago
  I mostly agree on that. How do you feel about current estate taxes, which, in effect, mean the third person has paid more tax than the first two?
  - dlp211 6y ago
    Estate taxes are on the estate, not a person. Also, there is a built in assumption that taxes have been paid. This is almost always not true, see step-up cost basis. Estate taxes serve a purpose, though I would argue that a lack of will has caused them to not serve that intended purpose. That doesn't mean that estate taxes aren't the right tool, just that it has been sabotaged. That also doesn't mean that they are the correct or best tool, but until we can see what the full force of estate taxes are, it is impossible to say. The type of tax that you just described is called an inheritance tax, and I am perfectly ok with them as well. Income is income, it doesn't matter whether it comes from your employer, a rental company, self-employment, or otherwise. Something I would be against is both an Estate and Inheritance tax being levied by the same entity. That doesn't serve any real purpose. I'd actually prefer an inheritance tax combined with a more progressive tax system over an estate tax.

dlp211 6y ago

We are a nation of laws, not men. Everyone should be treated the same under the law. Every person in your example should pay the same amount of tax.

profile53 6y ago
I mostly agree on that. How do you feel about current estate taxes, which, in effect, mean the third person has paid more tax than the first two?
- dlp211 6y ago
  Estate taxes are on the estate, not a person. Also, there is a built in assumption that taxes have been paid. This is almost always not true, see step-up cost basis. Estate taxes serve a purpose, though I would argue that a lack of will has caused them to not serve that intended purpose. That doesn't mean that estate taxes aren't the right tool, just that it has been sabotaged. That also doesn't mean that they are the correct or best tool, but until we can see what the full force of estate taxes are, it is impossible to say. The type of tax that you just described is called an inheritance tax, and I am perfectly ok with them as well. Income is income, it doesn't matter whether it comes from your employer, a rental company, self-employment, or otherwise. Something I would be against is both an Estate and Inheritance tax being levied by the same entity. That doesn't serve any real purpose. I'd actually prefer an inheritance tax combined with a more progressive tax system over an estate tax.