| > without loop holes and minimums 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. |
> Can i create a holding company, co-owned between me and next-of-kin and "invest" my money in it then let them liquidate?
You'll always have to transfer the stock to your next-of-kin somehow. This is where a tax would apply.
> Can i loan them the money?
Yes, but they'll need to pay it back someday. That makes the debt a taxable asset. (i.e. when you inherit you inherit the "asset" = the obligation, which is taxed with 50%)
> Can i gift them money?
In Germany the gift tax is the same as the inheritance tax.
> Can i store in trust?
Yes, and that's why I agree with you. It's just not as simple to avoid inheritance tax as you make it out to be.