- 02 Mar 2019 03:20
#14991558
A lot of people resist the inheritance tax because they don't see that it is fair to keep a person from leaving his/her children all or most or what you have earned in you life [with the intention of passing it on].
Others see the evil for democracy of letting wealth build up in the hands of a class that inherited all their wealth over a few generations.
I just realized that there is a way to structure the inheritance tax to appease both of these groups.
It is to take all of what you inherited (that was over about $10M) from your estate when you die. That is you can't leave any of the great wealth you inherited to your children because you didn't earn any of it. What you add to your wealth starting with that $10M you can leave to your kids. [And you can give them an education, connections, and some wealth while you're alive. The wealth may be taxed as their income, though.]
There should be some exceptions. Family farms/ranches (of a size that generates an income of less than $200K/yr) should be pretty much exempt, and all other wealth over $800M should be taken at your death. BTW --- if a guy starts a company (think Google or Amazon) and holds a controlling interest in it at his death, then as the estate sells parts to get down to $800M left, the value of what is still held is revalued in light of the impact that the sudden selloff of assets will have on those assets not sold yet.
Others see the evil for democracy of letting wealth build up in the hands of a class that inherited all their wealth over a few generations.
I just realized that there is a way to structure the inheritance tax to appease both of these groups.
It is to take all of what you inherited (that was over about $10M) from your estate when you die. That is you can't leave any of the great wealth you inherited to your children because you didn't earn any of it. What you add to your wealth starting with that $10M you can leave to your kids. [And you can give them an education, connections, and some wealth while you're alive. The wealth may be taxed as their income, though.]
There should be some exceptions. Family farms/ranches (of a size that generates an income of less than $200K/yr) should be pretty much exempt, and all other wealth over $800M should be taken at your death. BTW --- if a guy starts a company (think Google or Amazon) and holds a controlling interest in it at his death, then as the estate sells parts to get down to $800M left, the value of what is still held is revalued in light of the impact that the sudden selloff of assets will have on those assets not sold yet.
Last edited by Steve_American on 02 Mar 2019 10:10, edited 1 time in total.
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