Would you support an estate(death) tax of 75%?

[Malacrass]

There is leaving something behind for your children (think a few millions) and then there are entire fortunes being passed down from generation to generation (speaking of billions here). Such huge amounts of money dont just trickle down because the heirs are idiots. The money keeps being concentrated on the 0,01%, which obviously is a problem for the society in the long run.

That said, I would propose to not tax anything below a couple million dollars, and make exceptions when it comes to family businesses. Like, if the heirs pledge to keep the business running for another decade (keeping the jobs etc.) you could relieve them completely from the tax, but if the heirs wind up the business you could talk about an increased death tax.

I'm against a general death tax though, especially not a ridiculous 75%.

[Icedcoffeee]

Because it's not constitutional. Go get a job if you need money that bad.

http://www.iwf.org/blog/2797199/Supr...Constitutional

Of course double taxation is legal. (See literally all of corporate tax law; State and federal income tax law; International tax law.) The case you cited was about a two different states attempting to tax the same income. That's a dormant commerce clause issue, and has nothing to do with a federal estate tax.

And besides, how is the estate tax double taxation anyways? *You* aren't being taxed, your estate is, prior to transferring that money to someone else. It is effectively a tax on the transfer of money to your children, which we already do, just with minor exemptions. Calling this double tax is like saying sales tax is double tax. E.g. "I'm taxed when I earn the money AND when I spend it?!"

[Kiramouse]

Holy shit, this is one of the dumbest ideas I ever heard of.

First of all, the whole premise is dumb: if children are not "capable", either they or their children will lose all inherited money, therefore in most cases money WILL re-distribute naturally anyway.

Second, as many people have already pointed out here, double taxation is a no-no. How about raising taxes for very rich people instead?

Third, what's the point of working your ass off, if you can't pass anything you earned to your children when you die? This idea is a huge demotivator.

this is a tax for very rich people? the first 5.49mil (10.98 mil for a married couple) is not touched by the estate tax.

double taxation? more like a separate tax on unearned income for your beneficiaries

[Gevoth]

No. I don't support estate taxes.

[Elegiac]

I'd support one as high as 90%.

Inherited wealth is directly contrary to the idea of meritocracy.

[A dot Ham]

No, since you asked. A cursory google search would reveal that his donations are outside his sphere of influence.

Great for him... but you clearly missed the point.

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this is a tax for very rich people? the first 5.49mil (10.98 mil for a married couple) is not touched by the estate tax.

double taxation? more like a separate tax on unearned income for your beneficiaries

So it attacks old money? Interesting.

[Radaney]

Double taxation, LUL.

Tax everything whilst alive, tax when dead.

[Elegiac]

Double taxation, LUL.

Tax everything whilst alive, tax when dead.

"Double taxation" is a myth invented by the wealthy. You are being taxed in two different sets of circumstances, they're no more contradictory than having a sales tax and an income tax.

[Dezerte]

It might make sense economically to do so but morally/ethically there are issues with such a tax.

[Elegiac]

It might make sense economically to do so but morally/ethically there are issues with such a tax.

Boo hoo, rich kids might have their feelings hurt that they don't have the competence to make their own way in the world despite having every advantage.

[D3thray]

Heads up, rich people can give to their children 13k each year before they die so that they don't have to pay death taxes.

It's 14k. I have recent experience with this.

[shrunken]

Great for him... but you clearly missed the point.

I didn't, in fact I answered the most pointed question you asked. Please step up your shitposting.

[PragmaticGamer]

Because it's not constitutional. Go get a job if you need money that bad.

http://www.iwf.org/blog/2797199/Supr...Constitutional

Congratulations. You've found a specific case and applied it in general.

Guess I shouldn't pay sales tax, since I already pay income tax and property tax.

[Flatspriest]

Wow, a tax on things that have already been taxed and on death. Why in hell should you have to pay taxes on someone dying and also on the items that they had purchased and already paid the taxes on those same items?

[Elegiac]

Wow, a tax on things that have already been taxed and on death. Why in hell should you have to pay taxes on someone dying and also on the items that they had purchased and already paid the taxes on those same items?

Because one tax does not invalidate another tax.

Moreover; you're dead. You have no further use for that money, and the fact that you 'earned it' in life becomes moot.

[Acideyeliner]

No incentive... The only reason I would work a day past 45 (current retirement funding goal) would be to make more money to help out my family. Give them a place to live so they are never homeless etc. If it's all going to the goverment anyway I would blow every penny before they get to it. They'll just throw it away anyway then demand more. I have more faith in my family being responsible with it than the crap that goes down with gov't officials these days...

However, if there WOULD be 75%-100% estate tax, gotta take away regular taxes on my paychecks. Can't tax on the same thing two different times. Which would be awesome in the short run! And probably send me to an early grave anyways. Then see how much they get out of me in a death tax.

[Elegiac]

No incentive... The only reason I would work a day past 45 (current retirement funding goal) would be to make more money to help out my family. Give them a place to live so they are never homeless etc. If it's all going to the goverment anyway I would blow every penny before they get to it. They'll just throw it away anyway then demand more. I have more faith in my family being responsible with it than the crap that goes down with gov't officials these days...

An estate tax in no way prevents you from helping out your relatives financially while you are alive.

Moreover, estate taxes of this sort only tend to kick in above a certain wealth requirement; there is usually more than enough to guarantee relatives will live comfortably, but passing on the obscene levels of wealth that create the Paris Hiltons and Donald Trumps of the world comes to a grinding halt.

However, if there WOULD be 75%-100% estate tax, gotta take away regular taxes on my paychecks. Can't tax on the same thing two different times. Which would be awesome in the short run! And probably send me to an early grave anyways. Then see how much they get out of me in a death tax.

I'd like to know where you people are getting this idea that you can only have one kind of tax per person.

[D3thray]

Seriously the majority of people in this poll have no idea the parameters of the estate tax. The estate tax targets the very wealthy and most frequently collects on "unrealized" capital. The amount of revenue it generates completely favors the middle class, since they are hardly impacted negatively by the tax.

Doesn't take being uber rich over one generation to get dinged by this. Take a few generations of frugality plus prudent investing (my great grand parents and grand parents). My parents only hit 6 figures at the very end of their careers right before retirement. We're not top 20% by income on any measurement.

In my opinion people in favor of estate tax want a piece of generations of the work of my family. I can honestly say go screw yourselves.

[Elegiac]

Doesn't take being uber rich over one generation to get dinged by this. Take a few generations of frugality plus prudent investing (my great grand parents and grand parents). My parents only hit 6 figures at the very end of their careers right before retirement. We're not top 20% by income on any measurement.

In my opinion people in favor of estate tax want a piece of generations of the work of my family. I can honestly say go screw yourselves.

You mean the family that, for generations, has been benefiting off the entire system created by society within wealth can exist let alone be acquired.

Pay your dues and be grateful for the privilege.

[Deleted]

We call it "inheritance tax". I've always found it to be a stupid and unfair thing; not only does it stem purely from jealousy towards "the rich", but it also effectively prevents poorer families from accumulating wealth.