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There are a few ways wealth can be taxed, but usually only when it is changing hands. The so called "death tax" is an example, which is why it is such a hot bu
by jandrese 5y ago
There are a few ways wealth can be taxed, but usually only when it is changing hands. The so called "death tax" is an example, which is why it is such a hot button issue with billionaires that they propagandize it to the point that most Americans think it could affect them. A tax on wealth that is otherwise idle is novel.
In some ways the system as it currently stands is backwards, as it rewards hoarding and punishes people only when they try to make their wealth do something.
- TiberiusC 5y agoCan’t you avoid estate taxes with a trust?
- gnicholas 5y agoTrusts do not avoid estate taxes. They can be used to engage in tax planning, but they are still subject to the same limits on tax-free transfer.
- TiberiusC 5y agoIn South Dakota, there are no estate taxes and there are trusts that avoid federal estate taxes
- gnicholas 5y agoThere are no estate or inheritance taxes in most states. Please elaborate on the trusts that avoid federal estate taxes! I used to be a corporate tax attorney, and worked in one of the leading international law firms for estate law, but have never heard of such a thing.
- TiberiusC 5y agoThey are called dynasty trusts and the IRS allows shelter for up to only $11.7m per individual. After a google search I see there are many more states that allow them these days.
- gnicholas 5y agoI think what you're referring to is the exemption from generation-skipping taxes, and subsequent assessments of estate taxation. IIRC, these instruments are still subject to the regular estate tax when they are first set up, which is why they would typically be funded with an amount that is exempt from the estate tax.
- gruez 5y ago>There are a few ways wealth can be taxed, but usually only when it is changing hands. So an income tax?