This is the most frustrating news I’ve read about taxes. As an American, I’d like to think that our tax system was designed to be fair. Yes, Warren Buffet’s secretary famously paid a higher tax percentage than he did, because all of his wealth was in unrealized gains. I’d accepted that - with the understanding that upon Warren’s death, estate taxes would be paid, and “fairness” would be restored to the system. But, lobbying for tax loopholes, wealth left to charities where heirs are awarded outrageous management fees, etc are ways for the extremely wealthy to avoid ever paying these estate taxes. When I heard the democrats push for a billionaire tax, I was quite cynical, as I thought the fairness issue would be resolved through estate taxes. This $7B being an anomaly, suggests that the wealthy are engineering their way around paying these estate taxes. I thought those problems were limited to “step-up” in cost basis type of giveaways to the wealthy. Now I’m reading that even the basic estate taxes aren’t being paid. I’m livid. Hate to say this, but I may now support the democrats plan. It’s a horrible plan, but apparently estate taxes aren’t working either.
Building a business empire your entire life, taking loans against that business, having step up cost basis upon death, leaving everything to your heirs - without estate taxes - isn’t “fair”
Fair would be if everyone would pay a the same percentage on their income, no more brackets. And it should be no more than 10-15% of gross income. That's it. No estate taxe, no inheritance tax, no nothing tax.
I am pretty sure that those 10-15% are more than enough to have a functioning government that is able to serve the public pretty well.
What makes trust fund children more deserving of resources than anyone else? When these estate taxes are avoided, yes, illegitimately through lobbying, then the rest of society shoulders their burden. The difference between a trust fund baby and a welfare mother is just which bank account is sending money to them.
I’m not suggesting to eat the rich. Far from it. I’m suggesting to leave the hard working rich alone, and tax them at the end of life. Their children are no more deserving of their riches than anyone else.
