Concentration is inevtitable. By removing estate tax, people will have more reasons to work hard.
On the end of the spectrum, if you confiscate the estate of deceased people, people would have no incentive to work hard and maybe enticed to waste their wealth and spend it rather than saving it and being confiscated.
Generational continuity is one of the most important factors for human race and society, there is no need to destroy the basic fundamental human need to accomadate the luxurious need of wealth equality. Wealth equality was never a natural phenomenon and itâs just a society luxury which will never happen. Forced wealth equality in Societ Union, China and North Korea made human race on the brink of extinction after poverty and food shortage.
A free human should be able to dedicate his ice savings to whoever he want to. Tax man has no rights to take it away.
Not true. China population exploded under communism. Mao encouraged people to have children so babies were popping out from everywhere even though people were dirt poor.
However, I do believe in income and wealth inequality. No society can advance without it. Equal wealth means equally poor.
In Singapore, taxes are kept low because government has alternative way to obtain funding. There are many government owned companies, and government investment fund. The government owned companies not only allow government to earn $ but also control certain strategic industries. Quite often, government returns $ back to Singaporeans and help in re-modeling of your flat
Well, technically speaking, your kids do get a stepped up cost basis but they have to pay a lot of estate tax⌠(on the value of the stocks that exceed the exemption limits)
Well there is that whole bit about the millions and millions of people that died because of famine during Maoâs reign (Great Leap Forward) as well as those killed in the Cultural Revolution, but this is a complex topic â Communism is not strictly the sole cause.
Totally agreed. Here is some food for thought (hypothesis):
Too much concentration leads to social instability
Therefore a progressive tax system keeps social stability.
OPTION1 - âone time progressive taxâ to keep stability - i.e. revolution - communism - 100% tax on wealth every few generations or so.
OPTION2 - incremental tax - i.e. tax estates, and tax wealth, but on regular basis (when people die / every year) - spread the pain over multiple years to avoid the cataclysm of revolution.
Charity might work better. A minimized government is needed, but it should be minimized not maximized.
Tax should be minimized. Government should be minimized. Individual potential should be maximized. Wealfare should be reserved as the last resort.
A tax targeting any group, including the âwealthyâ, is a bad idea. Tax should be spread and shared by everyone. Wealthy people can do more in charity if they volunteer, not a penalty tax on their hard work and talent.
If everyone wants a minimized version of government, everyone should contribute to it. We canât force some of the most successful people to contribute and rest of us just donât contribute much.
Hah! Right here in the Bay Area. Purchase real estate. (non multi-fam but Iâm totally preaching to the choir here). Rent it out. Use depreciation to minimize tax, both CA and Fed, on the rental income for the next 27.5 years. Enjoy the GOP / Trumpâs 20% pass through deductions while it lasts.
At the end of 27.5 years you have 3 options:
OPTION 1 - Pass away. Kids get stepped up basis of the RE. No depreciation re-capture - you will have enjoyed the income from the real estate at super-reduced tax levels.
OPTION 2 - 1031 exchange, lather, rinse, repeat, and live another 27.5 years (no wayâŚ)
OPTION 3 - Move to Nevada, sell property, pay capital gains and depreciation recapture, but only at the federal level, not at the state level.
