|
|
|
|
|
|
by throwaway2037
1758 days ago
|
|
|
You wrote: "destructively over-burdensome" How do you feel about my suggestion of 50% inheritance tax without loop holes and minimums? It should decrease inherited wealth by greater than a geometric rate. If any Germans / Austrians / Taiwanese / Koreans / Japanese are reading this thread: Can you comment about how to handle inheriting a family business than is worth more than 1M EUR? (They are all famous for "Der Mittelstand"[1].) My point: When you begin to add exceptions, 1M EUR quickly becomes 10M EUR and 100M EUR! Idea: You "pay" the tax on a family business inheritance buy guaranteeing payments to national tax authority / treasury as long as the business is open. (Assume business does not go bankrupt!) You can discount the future cashflows and get a present value that appears as a debt on the company balance sheet. [1] https://en.wikipedia.org/wiki/Mittelstand |
|
|
How does this work? There are always loopholes. I don't think it could exist, nor will exist with the incentives of politicians, frankly. It would be nice though.
> How do you feel about my suggestion of 50% inheritance tax without loop holes and minimums? It should decrease inherited wealth by greater than a geometric rate.
I have no issue, in theory with aggressive taxes. I of course don't want to lose my income if the taxes don't help society, but i have no issue with useful tax. As a not-billionaire without inter-generational wealth protect, i see inheritance taxes value. I think, realistically, that people will always prefer to protect/provide to kin, at expense of society, and we have to work around that.
Can i create a holding company, co-owned between me and next-of-kin and "invest" my money in it then let them liquidate?
Can i loan them the money? Can i gift them money? Can i store in trust? Do other nations have successful ways to do this?
> Idea: You "pay" the tax on a family business inheritance buy guaranteeing payments to national tax authority / treasury as long as the business is open.
This seems like its burdensome to the business, in a way that could be destructive to it. If you suspend payment when its not profitable, then you can act like amazon and many other corps and eternally run a deficit to avoid tax. If you don't allow that, then you're draining the cashflow of a valid business which may kill it.
Frankly, i think its backwards too. Giving cash or liquid assets to your kids? Tax the S*T out of it. Giving a successful business that employees lots of people in your local town? Don't ruin the business trying to tax an old (wo)man giving it to their kids - that's destructive. Tax the kids when they cash-out from the business (sell biz, receive income, etc). I'm not particularly biz friendly, but they have real value to people outside of the family and produce something for society.
I also don't think its unreasonable to not tax real estate transfers, especially if its a primary residence. Maybe estate that actually stays in the family multiple generations doesnt get taxed, idk. Lots of people have strong multi-generational attachment to physical places. That's what really makes this hard.