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It isn't difficult at all. This is an oft repeated excuse. The rich use their wealth as collateral to purchase things, like homes, companies, investments, etc.
by bmitc 4y ago
It isn't difficult at all. This is an oft repeated excuse. The rich use their wealth as collateral to purchase things, like homes, companies, investments, etc. and transfer wealth to inheritors with basically no tax. So stop worrying about trying to figure out how to tax unrealized wealth and start taxing the things that unrealized wealth helps secure and purchases. This is one way to force realization of that wealth and thus tax it as well and get it back into circulation.
Right now, the rich are extremely incentivized to remain "poor on paper", so we should remove those incentives.
- nemo44x 4y agoAll the money they’ve made has been taxed. When they sell assets they pay taxes. Yes there are sone areas to address but wealthy people pay the majority of taxes.
- bmitc 4y agoNone of that matters if your concern is to redistribute wealth. It's all excuses to keep it concentrated.
- WalterBright 4y ago> transfer wealth to inheritors with basically no tax. Other than 40% federal estate tax and 20% Washington state tax, which is right next to zero.
- bmitc 4y agoExcept there are abuses of Roth IRAs and other cases where tax can be completely avoided. I think it was only recent that some limitations of Roth IRAs were put in place for heirs, but such investment vehicles do exist that do not get hit by the normal estate taxation processes.
- WalterBright 4y agoRoth IRAs have contribution limits.
- naasking 4y ago> Other than 40% federal estate tax and 20% Washington state tax, which is right next to zero. Took me 5 seconds to Google this: https://smartasset.com/taxes/5-ways-the-rich-can-avoid-the-estate-tax https://smartasset.com/taxes/5-ways-the-rich-can-avoid-the-e...
- WalterBright 4y agoThose can wind up deferring taxes, not eliminating them, and still they have exemption limits. The Roth IRA has contribution limits.
- naasking 4y agoGifts eliminate estate tax up to $12m. You can exceed even that limit by purchasing a property and placing it in a QPRT. Life insurance trusts also have no limit. Finally, even if it were true that it's merely deferring taxes, that means you can essentially time the market to pay less in tax when the rules are more favourable, and you can realize more gains in the interim.