We have a pretty strong reliance on the estate tax for situations like these. I imagine if longevity were discovered, that would change to another kind of wealth tax within 10 years.
Does the estate tax actually work in the US? Our equivalent in Britain appears to be a joke - anyone with a reasonable amount of money can just hire accountants to find some trivial way around it.
I think it's probably the most important tax, in terms of social equity - if you can easily pass down all your wealth from one generation to another, there are no wealth taxes, and capital reliably grows faster than the general economy, that is an obvious formula for the creation of an aristocracy - but I don't know whether it's compatible with the global financial system. Or perhaps it's just British politicians are particularly lackluster on cracking down on obvious avoidance schemes.
Not really. Estate taxes on large inheritances represent a tiny fraction of the overall federal tax revenue.
There are many techniques for circumventing/minimizing the tax. Law firms and accountants whose sole purpose it is to legally minimize this tax exist in every major American city.
The rich are making huge amounts of money compared to the rest of us now, and paying little taxes. What makes you think that longevity would change that?
People make this mistake all the time. The rich are paying the vast majority of all taxes paid, whether by income or property purchases. What isn't taxed is accumulated wealth and it should not be. The US has one of the most progressive systems in the world, one that harms competitiveness of businesses as well.
The simplest solution is to move from income to taxing spending. We have had the technology for tens of years where we can send people assistance, pension, and medical payments. Hence the technology to refund a percentage below the tax threshold exists.
I am loathe to use the name Fair Tax as it has been demonized by many, but note the bulk of this resistance is through political parties sponsoring groups and "think tanks" to do so. The reason is simple, a single flat/fair/etc tax on all purchases and service buys removes a lot of power from government. It would not be easy to switch too but in the long term it would remove the biggest burden to the countries economy which is the whimsy of those in charge.
Estate taxes are just evil. You got me when I earned it, how dare you take it from family just because you decide it was no longer ours once one person dies. Hence a consumption tax replacing all these taxes would be far better.
Brakenshire|11 years ago
I think it's probably the most important tax, in terms of social equity - if you can easily pass down all your wealth from one generation to another, there are no wealth taxes, and capital reliably grows faster than the general economy, that is an obvious formula for the creation of an aristocracy - but I don't know whether it's compatible with the global financial system. Or perhaps it's just British politicians are particularly lackluster on cracking down on obvious avoidance schemes.
nostromo|11 years ago
What makes my blood boil is that politicians that support raising the estate tax use trusts to avoid paying it. People like the Clintons:
http://www.bloomberg.com/news/articles/2014-06-17/wealthy-cl...
They're not alone... The Kennedys, the Pelosis, even Noam Chomsky is set up to avoid paying the estate tax!
http://www.hoover.org/research/noam-chomsky-closet-capitalis...
jhulla|11 years ago
There are many techniques for circumventing/minimizing the tax. Law firms and accountants whose sole purpose it is to legally minimize this tax exist in every major American city.
copsarebastards|11 years ago
The rich are making huge amounts of money compared to the rest of us now, and paying little taxes. What makes you think that longevity would change that?
Shivetya|11 years ago
The simplest solution is to move from income to taxing spending. We have had the technology for tens of years where we can send people assistance, pension, and medical payments. Hence the technology to refund a percentage below the tax threshold exists.
I am loathe to use the name Fair Tax as it has been demonized by many, but note the bulk of this resistance is through political parties sponsoring groups and "think tanks" to do so. The reason is simple, a single flat/fair/etc tax on all purchases and service buys removes a lot of power from government. It would not be easy to switch too but in the long term it would remove the biggest burden to the countries economy which is the whimsy of those in charge.
Estate taxes are just evil. You got me when I earned it, how dare you take it from family just because you decide it was no longer ours once one person dies. Hence a consumption tax replacing all these taxes would be far better.
jacquesm|11 years ago
bduerst|11 years ago