Inheritance Taxes plus No Stock reset...

[ThatOwlWoman]

why are liberals so against wealth, except for themselves?

We're not. Many of us have wealth that we intend to pass down to our own kids. Like everyone else, most of us who have wealth got it from working our entire lives, not as a gift from our parents.

A better question would be "Why do RWers believe that certain people shouldn't pay the same tax rates as we regular citizens do?"

 

[QP!]

Concentrating great wealth in the hands of fewer and fewer people is a recipe for an unbalanced economy as well as a breeding ground for resentment and even revolution. Cash flowing is what makes the economy run. Wealth hoarded causes stagnation.

IMO the inheritances should be taxed at the same rate we middle class wage earners are taxed. No loopholes or legal dodges. If they can't live on 70% of a billion bucks then they have problems.

i would take that but i actually think that is not enough.

For some strange reason (lobbying) the government has decided that tax on people labor should get the highest rate. That when people work hard they should pay the most tax.

I feel the opposite. The people who work hard for their money should get a break and pay the lowest amount of tax rate.

Capital gains tax, inheritance tax, etc often being passive gained income by a person not working at all should get a higher rate IMO.

But sure, if it is all we can get than tax them equally as it is a crime (lobbying gained crime) to not do so as a minimum.

 

[QP!]

So long as those that inherit the wealth, in whatever form, don't have to pay taxes on that wealth, it's all good.

For example, Bezos puts the stock in a trust that his kids are part of. The trust holds the stock, not Bezos personally. He dies, the trust continues, and the kids 'inherit' the stock with no taxes paid because it is the trust not them, that legally owns it. It is really just semantics, but whatever the government can come up with, smart people will find a way around it.

Massively taxing inheritance--or trying to--just leads to a loss of multi-generational wealth. That is, for persons in the Middle Class, there is no escape upwards by passing on wealth to your children. If on the other hand, such wealth is not taxed, then your children can build on what you've earned and saved pushing them up in terms of economic position.

I think that's a far better model than one where each generation is stripped of its wealth upon the last passing away.

I always find it funny that the right acts as if merit is core to their beliefs and that entitlements are a bad thing until it comes to inheritance.

Then suddenly the right is 'entitlements are sacrosanct and should not be touched".

There is no reason to believe that the children of the rich should get their income (inheritance) tax free when no one else does.

Just because it is income gained by inheritance instead of work, should not make it magic... not make it some special class. That is brand new income to the person and they should pay tax on it.

That is, unless you are all in on the entitlement belief.

 

[T. A. Gardner]

I always find it funny that the right acts as if merit is core to their beliefs and that entitlements are a bad thing until it comes to inheritance.

Then suddenly the right is 'entitlements are sacrosanct and should not be touched".

There is no reason to believe that the children of the rich should get their income (inheritance) tax free when no one else does.

Just because it is income gained by inheritance instead of work, should not make it magic... not make it some special class. That is brand new income to the person and they should pay tax on it.

That is, unless you are all in on the entitlement belief.

Okay, what makes the government entitled to take a big chunk of someone's lifetime earnings instead of letting that be passed on to their children?

The government didn't earn it. The government had nothing to do with the accumulation of that wealth. Shouldn't the deceased get to decide how they will pass what they have EARNED on?

There is no reason to believe that the government is entitled to a penny of anyone's wealth upon someone passing. This is wealth confiscation by a party that has no claim or right to it other than by use of force. That is, unless you believe in the politics of envy.

 

[Crepitus]

No. As i said you are speaking on a topic you have a profound lack of understanding of.

Capital Gains Tax is a one-time federal and state tax on the profit made from selling a property and is often a significant and large check taken upon the property closing sale, while Property Tax is an ongoing, yearly local tax based on the assessed value of the home itself and is typically small and managed from a families cash flow.
Here is a direct breakdown of how these two taxes function:

Feature	Capital Gains Tax (When Sold)	Property Tax (Yearly)
Trigger Event	Selling the home for a profit.	Simply owning the property.
Frequency	One-time event (only when the sale closes).	Yearly (often split into semi-annual or monthly payments).
Tax Base	The net profit (Selling Price minus Purchase Price & Improvements).	The assessed market valueof the land and buildings.
Who Collects It	Federal government (IRS) and your state government usually at home sale as part of closing since the amount can be large.	Local government (your county, city, or school district).
Purpose	Taxes the creation of new wealth/income.	Funds local services (schools, roads, police, fire departments).

Nope, sorry but I'm not. When you pay property tax you are paying for your unrealized capital gains. Then you have to pay it again when you sell for a profit.

 

[Jerry Mathers]

I am curious what everyone, left or right view on this.

Using Jeff Bezos as the example, when he dies he will likely leave substantially all of his Stock to his kids. Stock he received at a zero cost base when Amazon was created that is worth Hundreds of billions today.

Due to lobbied for tax policy Bezos has been able to just borrow money against his stock to live and never sell any stock and thus avoid the significant Capital Gains tax he would otherwise pay.

When his kids get the stock, after his death Congress due to Lobbying passed a law that the stock gets a Capital gains reset, meaning whatever the stock price is, it is trading at, now becomes the price they would set for them to pay Capital gains but all the prior gains they get free. SOmething Jeff Bezos would not have got while alive.

So not only do the kids hundreds of billions but they get it tax free on a stock gain that NEVER EVER gets taxed in the way normal citizens with stock get taxed.

Making the heirs pay the Capital Gains at inheritance still leaves them filthy rich but just allows the tax everyone else pays on stock gains to be received by government.

Would you support this transfer being taxed or do you believe the heirs should get it tax free?

the fascists have stopped thinking.

they're running on zio-trauma and hi-tech cult spells.

 

[Jerry Mathers]

Okay, what makes the government entitled to take a big chunk of someone's lifetime earnings instead of letting that be passed on to their children?

The government didn't earn it. The government had nothing to do with the accumulation of that wealth. Shouldn't the deceased get to decide how they will pass what they have EARNED on?

There is no reason to believe that the government is entitled to a penny of anyone's wealth upon someone passing. This is wealth confiscation by a party that has no claim or right to it other than by use of force. That is, unless you believe in the politics of envy.

and here's king neocon butthole to drive home the point.

 

[Jerry Mathers]

A hypnogogic fugue state of unconscious stupidity.

 

[Jerry Mathers]

Okay, what makes the government entitled to take a big chunk of someone's lifetime earnings instead of letting that be passed on to their children?

The government didn't earn it. The government had nothing to do with the accumulation of that wealth. Shouldn't the deceased get to decide how they will pass what they have EARNED on?

There is no reason to believe that the government is entitled to a penny of anyone's wealth upon someone passing. This is wealth confiscation by a party that has no claim or right to it other than by use of force. That is, unless you believe in the politics of envy.

why should bankers be bailed out ever?

 

[QP!]

Nope, sorry but I'm not. When you pay property tax you are paying for your unrealized capital gains. Then you have to pay it again when you sell for a profit.

Ya you are.

Everyone pays properly tax. EVERYONE.

and that does not stop people paying and additional Capital gains tax on the sale when they make a profit.

You have a deep misunderstanding of this issue.

 

[QP!]

Capital gains tax and property tax are two completely different taxes.

Capital Gains Tax on Property

• What it is: A tax on the profit (gain) you make when you sell a property for more than you bought it for.

• When it is paid: Only when a transaction or sale occurs.

• Rate: Based on how long you owned the property:
• Short-term (held 1 year or less): Taxed at your ordinary income tax rate (up to 37%).
• Long-term (held more than 1 year): Taxed at 0%, 15%, or 20% depending on your income.

• Exemptions: If the home is your principal residence and you lived in it for at least 2 out of the last 5 years, you can exclude up to $250,000 of profit if single, or $500,000 if married filing jointly. Investment properties can also use strategies like a 1031 exchange to defer the tax.

Property Tax

• What it is: An ongoing, recurring local tax (ad-valorem tax) levied annually by local governments based on the assessed fair market value of your real estate.

• When it is paid: Every single year, whether you sell the property or not.

• Rate: Set locally by cities, counties, or school districts to fund public services like police, fire departments, and schools.

• Deductibility: You can often deduct a portion of your annual property taxes on your federal income tax return (subject to the $10,000 SALT cap under current tax law).

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[QP!]

Okay, what makes the government entitled to take a big chunk of someone's lifetime earnings instead of letting that be passed on to their children?

The government didn't earn it. The government had nothing to do with the accumulation of that wealth. Shouldn't the deceased get to decide how they will pass what they have EARNED on?

There is no reason to believe that the government is entitled to a penny of anyone's wealth upon someone passing. This is wealth confiscation by a party that has no claim or right to it other than by use of force. That is, unless you believe in the politics of envy.

What makes a government entitled to take a percentage of a workers life time earnings?

The government did not earn it.

But the government says 'we provide roads, military, policing, etc' and in exchange for that we tax the income you get in our jurisdiction.

What you are arguing for is a 'rich kids exemption ' from that. A 'entitlements pass'.

 

[Jerry Mathers]

What makes a government entitled to take a percentage of a workers life time earnings?

The government did not earn it.

But the government says 'we provide roads, military, policing, etc' and in exchange for that we tax the income you get in our jurisdiction.

What you are arguing for is a 'rich kids exemption ' from that. A 'entitlements pass'.

yes.

a libertarian addle minded fake "job creator" pass, even when they're laying everyone off.

 

[QP!]

yes.

a libertarian addle minded fake "job creator" pass, even when they're laying everyone off.

Income is income when it is gained by any person the first time.

Terry has created this fake criteria that income gained via inheritance is magic and thus should get a pass and only working slobs should pay.

The reason for a tax on any income is so each person contributes to the services they get from government. There is no reason Larry Elisons son should get billions in income and be able to contribute nothing for the services he uses while the working slobs with the 9-5 job pays for the services for him.

They should BOTH pay on their income with no type considered magic and exempt.

No entitlements.

 

[T. A. Gardner]

What makes a government entitled to take a percentage of a workers life time earnings?

The government did not earn it.

But the government says 'we provide roads, military, policing, etc' and in exchange for that we tax the income you get in our jurisdiction.

What you are arguing for is a 'rich kids exemption ' from that. A 'entitlements pass'.

You miss the point here. Governments need funding to operate. That's a given. Okay, so let's say they take a portion of income as taxes to support those operations. You paid a tax on that wealth (income) one time.

Now, upon your passing, the government wants to come in and take whatever you didn't spend or use during your lifetime rather than let your heirs and children have it. That is, they are taxing it a second time.

With stuff you have bought and paid for, and likely paid a sales tax on, they are doing the exact same thing.

Inheritance taxes are double taxing wealth. Why? Because there's a good amount being passed on from one generation to the next, and because the argument they make for doing that plays well to the politics of envy that the Left loves so dearly.

 

[QP!]

You miss the point here. Governments need funding to operate. That's a given. Okay, so let's say they take a portion of income as taxes to support those operations. You paid a tax on that wealth (income) one time.

Now, upon your passing, the government wants to come in and take whatever you didn't spend or use during your lifetime rather than let your heirs and children have it. That is, they are taxing it a second time.

With stuff you have bought and paid for, and likely paid a sales tax on, they are doing the exact same thing.

Inheritance taxes are double taxing wealth. Why? Because there's a good amount being passed on from one generation to the next, and because the argument they make for doing that plays well to the politics of envy that the Left loves so dearly.

There is no logic to saying someone else paid tax on their income so I should get a lifetime pass on ever paying tax on my income.

They are using govt services and completely free riding if others pay the tax so they do not have to.

The person gaining that income via inheritance is not magic. It is still their income. When your boss gives a worker a pay check he has already likely been taxed many times in the process of making that money.

The worker does not get a magic pass because the boss already paid tax on it as it is unique first time income to the worker

 

[Crepitus]

Ya you are.

Everyone pays properly tax. EVERYONE.

and that does not stop people paying and additional Capital gains tax on the sale when they make a profit.

You have a deep misunderstanding of this issue.

And everyone should pay on "unrealized capital gains" when they realize them to secure a loan too.

 

[QP!]

And everyone should pay on "unrealized capital gains" when they realize them to secure a loan too.

Yes. But not on paper bull market gains that can disappear a year later in a bear market.

That would potentially force the most vulnerable home owners to sell to pay a big tax bill only to see the house then drop in value.

 

[Walt]

If you think some billionaire is about to have their kids pay tax on inheritance, you are nucking futs. They will put that wealth in a trust, corporation, hedge fund, or whatever in such a way as to avoid taxes. The kids simply gain control of the funds.

Trusts only exist because governments allow them to. It is a form of corporate personhood. If governments want to, they can simply tax trusts, or even just make them illegal.

When the US wanted to make bearer bonds illegal, they just placed a tax on them. Now there are no bearer bonds issued in the USA.

 

[Walt]

You miss the point here. Governments need funding to operate. That's a given. Okay, so let's say they take a portion of income as taxes to support those operations. You paid a tax on that wealth (income) one time.

You only pay taxes on realized capital gains, so most of the wealth did not have taxes paid on it.