[Retric]

Confiscating wealth is counter productive. But, so is a large group with unearned wealth where nobody they know actually earned anything.

IMO, the balance point is setting things up so the default is wealth is not maintained across several generations (3+), even though it can be passed down 1 or 2 generations and can be maintained with care past that point.

PS: I say this with many wealthy friends and family. It's surprisingly destructive and I don't want to setup multi generational wealth for my great grand children.

[tankerdude]

The sad part is that that's what is happening in the world today. The rich, when they fund their money correctly, stay rich due to tax policy, gray areas, and loopholes. (Insurance polices as one example for the ultra rich.)

If we don't tax people when they pass away, the money goes straight to their kids, and then a permanent upper class forms and we know what happened to France...

The US has been about meritocracy, and not an aristocracy. But people want to change that, to the detriment of the country, IMO.

[randyrand]

When I said "But take-back over generations" I was not referring to an inheritance tax. I was referring to preventing new people from becoming as wealthy as today's wealthy by changing to a very large marginal income tax rate. It would be clearer if I said "widdle down the size of wealthy class over time". By far most of the wealthy today are new money, so an inheritance tax would do little in that regard anyway.

But back to inheritance:

> not maintained across several generations (3+)

You're inventing problems. Inheritance decreases exponentially. Multi 3+ generational wealth is already divided by 64 times (assuming 2 children + spouses). It is not possible without the children putting in significant work themselves. You're inventing problems.

At least we have common ground. Being able to pass on our successes to our children is a large and important motivator in life - one that would be incredibly unwise to remove.

[Retric]

You assume the spouse is not wealthy. Wealthy spouse turns 1:2 into 2:2 which is stable. Interest can also slow for the occasional al 2:3+ growth. Europe has family's that have maintained wealth over the past 500+ years.

"That’s according to a recent study by two Italian economists, Guglielmo Barone and Sauro Mocetti, who compared Florentine taxpayers way back in 1427 to those in 2011. Comparing the family wealth to those with the same surname today, they suggest the richest families in Florence 600 years ago remain the same now."

England has also had wealth maintained for 28 generations and other old money examples are not hard to find.

[randyrand]

> That’s according to a recent study by two Italian economists, Guglielmo Barone and Sauro Mocetti, who compared Florentine taxpayers way back in 1427 to those in 2011. Comparing the family wealth to those with the same surname today, they suggest the richest families in Florence 600 years ago remain the same now.

I recall that study. They were still a multiple orders of magnitudes less wealthy, and that ignores any wealth/money/work children added themselves since that time. If anything, this study proves my point.

>Europe has family's that have maintained wealth over the past 500+ years.

>England has also had wealth maintained for 28 generations and other old money examples are not hard to find.

That's an excellent example of survivorship bias. Again also not acknowledging any work the kids have put in to maintain that wealth.

For every example of a rich family whose money has been kept for 3+ generations, I could find you 100 examples that dont (not actually, I should probably be getting back to work).

This is a non-issue.

[meric]

I don't agree on large marginal taxes on labor, you'd be targeting high earning surgeons rather than rich families inheriting wealth. If we want to tax capital, tax capital, and put a wealth tax of low single digit percentage point paid yearly. If you want to exclude people's first home, then do that.

[randyrand]

I'm still not sure how much of a problem this really is.

88% of the very wealthy ($30+ million) in the USA made their wealth themselves.

https://www.forbes.com/sites/niallmccarthy/2016/10/10/where-...

...the best source I could find.

[Retric]

That's with a long history of estate taxes and strong economic growth. Also, if you look at Americans with 10+ billion far more than 12% inherited their money.

The US has been stagnating with lower GDP growth rate over time which will likely change these numbers. Because the low % of inhered wealth is mostly due to large numbers of new wealthy not children of the wealthy losing their money. http://www.lagunabeachbikini.com/images/2014/economy/RGDPgro...