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> is the same one that benefits an average person w.r.t estate tax. No, it's not. 2 points: 1. Average people don't pay estate tax, because only a teeny porti
by hn_throwaway_99 2y ago
> is the same one that benefits an average person w.r.t estate tax.
No, it's not. 2 points:
1. Average people don't pay estate tax, because only a teeny portion of estates make over the exemption amount.
2. I realize point one is a separate issue from what you're referring to, which is the step-up in basis at death. But that tax strategy of taking out loans to cover your lifestyle so you can pass on appreciated assets with a low basis is only possible for people with a huge amount of assets to begin with (i.e. people who already have enough to completely love off their assets without working).
- amazingamazing 2y agoOK, so you should advocate for changes in the estate tax. When that inevitably fails, because no parent wants all of their money to be taken by the government, we can come back to this thread.
- lossolo 2y ago> OK, so you should advocate for changes in the estate tax. Haha, good one. Good luck with that, you’re up against the most powerful and influential people and their lobbyists. Others have already tried. Maybe if the U.S. were a democracy instead of a plutocracy.
- hn_throwaway_99 2y ago> When that inevitably fails, because no parent wants all of their money to be taken by the government I only think it fails because Democrats have horrible messaging. Republicans branded it a "death tax", when I think it should be called the "aristocracy prevention tax". Your average person has no idea how the estate tax works (i.e. they think it applies to them). In the late 1800s/early 1900s the UK implemented what is perhaps the largest nonviolent transfer of wealth by instituting large estate taxes on their aristocracy and landed gentry.