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soccerdave | 5 years ago

I've never understood why the government thinks that just because someone has died, they deserve 40+% of money that has already been taxed.

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elric|5 years ago

I'll give you the benefit of the doubt and answer the question honestly. Assuming we're talking about a country where "The Government" is pretty well behaved, said government doesn't put that money in its pockets. It makes it work for the people it represents. Working for your money and becoming filthy rich is fine. But when you die, you die. None of that money is yours anymore, because you no longer exist. We, as a society, are free to decide what we do with what's left of you and your belongings. In an ideal world, we can use that to better the lives of others.

Unless you were a truly stingy person in life, your affluence will have already have had huge positive impacts on those near and dear to you. Once you're dead, why should they be any more important than any other person?

nitsky|5 years ago

> But when you die, you die. None of that money is yours anymore, because you no longer exist. We, as a society, are free to decide with what's left of you and your belongings.

Most governments enforce a person’s will after they die. People generally elect to distribute their property to particular people, specifically to avoid it ending up in the hands of “we, as a society”.

thomasfromcdnjs|5 years ago

So many assumptions in your logic and your use of "soceity" is dubious at best.

It really just sounds like you think we are all children under one global nation.

I personally will never agree to that, and want my offspring to do better than the rest so we will be at odds at some point.

valuearb|5 years ago

How does government pork benefit me? Other than burying me in taxes and my children in debt?

richwater|5 years ago

[deleted]

nitsky|5 years ago

> Once you're dead, why should they be any more important than any other person?

Why favor your family, friends, or countrymen over any other person during your lifetime either? Everyone behaves this way. For example, why does government sponsored health care in western countries only cover their own citizens? Do the lives of people in less affluent countries not matter? Do they have less intrinsic value?

happytoexplain|5 years ago

This is a poor argument - it contains no distinction from any taxed transaction. All money changing hands has "already been taxed" in the way you are using the phrase. Unless you are saying that all tax is wrong, in which case you should definitely make that argument rather than this much more specific one.

jnwatson|5 years ago

It isn't about "deserving" anything. The societal problems behind inter-generational wealth are wide and deep. This was recognized by the founders of the US, in particular Thomas Jefferson.

Adam Smith: "There is no point more difficult to account for than the right we conceive men to have to dispose of their goods after death."

This is taxation for policy reasons, not income.

maerF0x0|5 years ago

This is creating a false narrative that the only way to economic mobility is through theft upon generational transfer. It conveys a message of helplessness rather than rewarding usefulness and it's a vicious cycle.

Economic mobility should be solely predicated on the expression of competence/ability in the pursuit of providing value to others in your society. It's not even that hard[1]. Get an education and a job, avoid the big economic sinks.

> This means that 40 percent of why some Americans are extraordinarily well off has nothing to do with smarts, hard work, frugality, lucky gambles or entrepreneurial ingenuity. It is simply because they were born to rich parents.

We should not fear the money landing in undeserving hands, it will rapidly be drained away if that is the case. Many(most?) very wealthy families employ wealth managers that ensure that money is profitably engaged with the society anyways, so in reality the money is not really in the heir's hands anyways, but is tied up in companies that are serving the country and employing others.

[1]: https://www.brookings.edu/opinions/three-simple-rules-poor-t...

happytoexplain|5 years ago

This starts with an excellent point - many bad, emotionally-driven arguments about how society works are predicated on the concept of "deserving". Bad people "deserve" to suffer in prison. Good people "deserve" every penny they make. The arguments rarely bother to go beyond those assumptions. The concept of "deserving" is real and important, but it's also commonly the linch pin of bad-faith arguments.

disposekinetics|5 years ago

The purpose of taxes is to fund the budget. This feels like back door social engineering.

metzby|5 years ago

Lots of the money hasn't been taxed. If you owned stock for decades but never sold it, it wouldn't have been taxed.

beamatronic|5 years ago

The money that was used to purchase the stock originally was probably post-tax dollars

munificent|5 years ago

Tax money must come from somewhere. Imagine this as a zero-sum game where you have some fixed total amount of taxation that you're trying to reach and the question is just who pays how much.

Given that, is there anyone who could possibly need their money less than the dead?

bobbytherobot|5 years ago

The government doesn't tax anyone who dies. They tax the estate of the wealthy. Few people will be affected by it.

There is plenty more you can read on the topic. The general idea is that it helps create a meritocratic society.

noja|5 years ago

If you read the article it will help:

"Some will argue that this example ignores any income and payroll tax the wealthy parents paid when they originally earned the $50 million. But if the couple paid their personal chef’s wages out of after-tax income, we wouldn’t think their personal chef should get credit for the taxes they paid. Similarly, we should ignore any income or payroll tax the couple paid when considering how much their son should contribute to the costs of government."

wrren|5 years ago

Because we live in a society.

rs999gti|5 years ago

> Because we live in a society.

Why don't I have a downvote button for this?

whytaka|5 years ago

Because dynastic wealth is unearned and aggravates unequal circumstances of birth and accumulates capital in less competitive markets thus delegitimizing the purported meritocracy that is capitalism.

simfoo|5 years ago

In fact I think the government has all the rights to take all belongings after someone dies. After all the person earned it from society, not its descendants.

rs999gti|5 years ago

What the government gives it must first take away

choeger|5 years ago

It's not just the money. Imagine real estate. Today's value might be completely out of the owners. Say granny wants you to inherit their old penthouse in downtown New York (just an example, I have no idea if it is technically possible to own such a thing) or any other real estate that they used for living and is now worth tens of millions. The government won't let you have it. Or Grandpa's old company. It makes a little profit but was always in the hands of the family and it is now evaluated for tens of millions. Government forces you to sell it.

I could go on. Art collection, old cars, even immaterial rights or stocks that are massively undervalued right now for one reason or another (for instance because the founder just died suddenly).

Inheritance taxation is inherently unjust because it cannot distinguish between goods that are easily traded for and the ones that cannot easily be sold.