My situation is unique, and when I inherit it’s moral and just - my parents worked so hard, we earned this, it’s unfair to have so much tax.
When others inherit, society needs to take their wealth and redistribute it. Their situation is not like mine. These millionaires and billionaires got lucky and their kids don’t deserve to be rich for no reason.
It's always hard, which is why sarcasm just isn't a good fit for text-only forums like HN. Too many of the cues that reveal sarcasm as sarcasm are lost.
Of course it's unfair. It's the definition of unequal opportunity.
That doesn't necessarily mean it's immoral or should be illegal, but how could you argue that it's fair that some people get free money while others don't by the luck of their birth?
I don't get it, everyone can be born. Are you saying that it's the possibility of iteration that makes it fair? So if the raffle enforced one ticket per person it is no longer fair?
Two hard working people are born in poverty. They each work hard and reap the rewards of their success. They both pay income tax on their gains. One of the people spends their lifetime of accrued wealth on themselves, buying a nice car, a huge house, and luxury goods they don't really need. The other person is concerned about the future of their only child and lives well below their means, when they die they will their estate to their child who immediately stops working and never works again. Is that fair?
Now consider a third person who also cares for their child. This person also lives frugally but instead of saving their wealth every year they buy their kid fancy cars and luxury goods. They die penniless but their kid never had to work a day in their life. Is that fair?
It confuses work ethic with fairness. It works because we incorrectly associate good work ethic with positive outcomes. This is a particular to our current time and place in society and we should be very cautious when attempting to universalize it.
It would be good to reframe it with consequentialism in mind to reveal the unspoken truths of the examples.
> Two hard working people are born in poverty. They each work hard and reap the rewards of their success. They both pay income tax on their gains. One of the people spends their lifetime of accrued wealth on themselves, buying a nice car, a huge house, and luxury goods they don't really need. The other person is concerned about the future of their only child and lives well below their means, when they die they will their estate to their child who immediately stops working and never works again. Is that fair?
Ten generations later, the descendants of the first person have all been able to expand their wealth purely due to the wealth that their ancestor had. None of them have had to work hard for generations, but they all vigorously defend their right to give their wealth to their kids without taxes so that they also don't have to work hard. Meanwhile, the descendants of the second person are unable to acquire wealth due to the advantage that people like the first person have in controlling capital, and they all work menial jobs for people like the first person. Is that fair?
No, it isn’t fair but that can be avoided by adding friction to wealth via an annual wealth tax, and then only applying it on the largest (100m+) fortunes. I don’t think anyone thinks someone who works hard and saves shouldn’t be able to pass on a few million, or even tens of millions, to their descendant. But what you refer to is equally true - no one but the beneficiaries agree that someone should be born into monstrous wealth and be able to sustain generation after generation on the basis only of winning the ovarian lottery.
I, personally, would have a tax of 100% on all wealth over $100m.
I limited my hypotheticals to a single generation because I was interested in learning specifically what it is about inheritence that people find unfair.
Your response would seem to posit a different set of questions, namely should capital be used to make decisions for society and does a concentration of capital force those without to work a lifetime of menial jobs?
I'm less interested in addressing these questions since I've heard a lot about them before and I think it will take us on a further tangent from the original discussion. But I will just say that I see no difference between a first generation person who doesn't work and a tenth generation person who doesn't work beyond perhaps an abstract greater disconnection from the rest of society and the concept of hard working. And that for capital to have influence over society it must be deployed which carries with it the risk of losing said capital.
I'm not sure how you can separate the question about inheritance fairness from multiple generations other than in a very abstract sense because I think the unfairness is most often perceived with wealth that is so great that it will last beyond just the immediate heirs lifetimes. An inheritance of $10,000 is likely not going to last long enough to be passed on to one's own children, but an inheritance of hundreds of millions is presumably not going to be entirely used up in one generation.
Why does the number of generations that can free ride matter? If Warren Buffett can make 100 billion dollars in a single generation then he can skew society today. How would it be any different if he'd inherited it from his parents? Or his great great great to the nth grandparents? If there is a problem with concentrated wealth why is it more of a problem if it took a long time to accrue or to deplete or if it was accrued 200 years ago or this morning?
It would take an extraordinary amount of discipline to maintain that wealth ten generations down the line. “Rags to rags in three generations” is a saying for a reason.
I think the answer is to treat capital gains and dividends the same as ordinary employment income and subject to the same tax rates. Perhaps introduce a sub-1% wealth tax per annum on very large fortunes (100m+) to add friction that the wealthy have to work to counteract.
*and to treat loans against capital assets as taxable income. Otherwise we’ll keep seeing the wealthy avoid taxation by loaning against their assets. So long as rates stay relatively low.
It's obviously a nuanced discussion, but it's certainly a personal windfall to inherit land. It's hard to call it unfair, that's just life, but comparing one person who inherited land to someone who did not, it's clear who has the luckiest version of that scenario.
As long as there is sufficiently high property taxes that owners of land are forced to put it to societally useful purpose in order to pay the tax, I don’t see an issue with land inheritances. I don’t agree with “deemed disposition” tax rules that act as if the land was “sold” to the inheritor, triggering massive capital gains taxes.
When others inherit, society needs to take their wealth and redistribute it. Their situation is not like mine. These millionaires and billionaires got lucky and their kids don’t deserve to be rich for no reason.