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Push the inheritance tax to 99%, and lower the income and business tax instead, to 1% if possible. When you're dead, you don't need money (unless you want to b
by guylhem 14y ago
Push the inheritance tax to 99%, and lower the income and business tax instead, to 1% if possible.
When you're dead, you don't need money (unless you want to buy cryogeny contract, but you'll pay for it when you are living).
If you pass on this money to your family, 2 things happen :
- you skew the odds in their favor. Other people who might be equally capable and intelligent won't be able to compete with them. that's a class society as in medieval europe, where wealth in inherited
- you incentivize their laziness, and encourage them to destroy their life with this unearned money. you basically ensure they won't be able to grow from normal bad experiences. trust fund kids give a glowing example.
As much as I hate giving money to a government, I'd rather see my money there when I die that either or both of these 2 things happening. The alternative would be earmarking that money to debt reduction, so that at least it wouldn't be redistributed. That could be a good alternative.
- joshuahedlund 14y ago> Push the inheritance tax to 99%, and lower the income and business tax instead, to 1% if possible. The wealthy would respond to such a system by giving all their stuff to their kids before they die. It always amuses me when people prescribe magical tax plans in a static world as if people won't change their behavior. Despite thousands of changes in tax law over decades, the maximum level of revenue the government has been able to extract from the population has remained remarkably constant[1] [1]http://www.heritage.org/federalbudget/current-tax-receipts http://www.heritage.org/federalbudget/current-tax-receipts
- guylhem 14y agoThat's a very good remark - upvoted! Some people will change their behavior and that's ok- because they'll be able to see with their own eyes, while they are still alive, the damage they'll do on their own family and maybe on society too. That could induce other changes, such as them giving conferences to other people considering doing the same of the damages of 'unearned money'. And even if only 1% could be shaved of the business and income tax, that'd be a move in the right direction - and sending a good message. The idea is not so much increasing government revenue (I'd rather see it lowered to limit the waste) but reducing the damages caused by the whole idea of 'inheritance'.
- webjprgm 14y agoPlease everybody remember that inherited assets are not all money. Some things have sentimental value, like the home you grew up in or 100 year old furniture made by a great-great grandpa. Those things should stay in a family and not be ripped away by the government. Of course, as people have already pointed out they can just be given away before death. As long as it's not a sudden, unexpected death.
- jwhitlark 14y agoOne of the rarely addressed big problems with inheritance tax is that it frequently forces the liquidation of small businesses that are otherwise going concerns in order to pay the tax bill.
- hkmurakami 14y agoPeople are already taking advantage of the fact that the current estate-tax-and-gift-tax lifetime exemption is $5.12MM per individual and $10.24MM per couple, since this limit will expire at the end of the year and be reduced substantially.
- deleted 14y ago[deleted]
- sliverstorm 14y agoAs much as I hate giving money to a government, I'd rather see my money there when I die that either or both of these 2 things happening. Then do it. There is no tax minimum; pay more on your taxes, make the US government the recipient of your assets in your will.
- guylhem 14y agoNot from the US but France, where there is a law mandating specific minimum percentage to be left to various family members
- sliverstorm 14y agoIf it's a percentage, just pay a ton of money in taxes while you're still alive.
- guylhem 14y agoIf I knew the precise moment of death that could be an option :-)