The amount of people living subsidized by their parents is astounding

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m in a big extended family with generational wealth. I benefit from it, and I will pass it on.

I gotta say, this idea of subsidizing doesn’t bother me. If my kids are happy and healthy and fulfilled, I don’t really care if they use trust money or a salary or some combo to pay their bills. There’s no prize when you die for a pile of W2s. The very few people in my extended family who really made piles of money were all entrepreneurs anyway. Boom and bust types.

It would be kind of crazy to me to have a bunch of assets and not change your life at all.

Agree with all of this, but as was said in a previous comment, I just want the rich kids to pay TAXES on this unearned income. That doesn’t seem like too much to ask.

Well, someone pays it. You can put assets in a trust that protects them from the estate tax for generations. But the trust pays income tax and capital gains taxes, and then if you take a distribution from the trust, you pay income tax on that (depend on the details yada yada). But then if you give money from that distribution to your adult kid, yeah, you’re good to go up to the annual or lifetime exemption.

I hear what you’re saying that you feel like the gift transfer should be a taxable event, and it is! But only after the annual & lifetime exemptions.

The policy around all that is complicated because if you don’t have a big exemption, you’re going to force the sale of a lot of privately held businesses. It’s not like everyone is just sitting on piles of cash.

Yeah, I don’t give a single shit if that happens. It should all be treated as income and taxed at the same rate as earned income at the time it is revealed. Unless you think people shouldn’t have to pay income taxes until they reach some lifetime exemption, it’s fundamentally unfair and un American.

But the rich people are always full of excuses as to why THEIR handouts are totally okay.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'm over 50 and have never met anyone like this. What kind of loser would accept money from parents/family? It's not that hard to just get a job and pay your bills in the US, assuming you didn't have kids before finishing college.

Millennials do all the time and see nothing wrong with it.

DP millennials are 35-40 years old. If they are living off the parents dole, then they are losers.

I am a millennial and made 1.1M last year. My parent's give me $36k a year because they are wealthy. $10k went to charity and the rest was saved for my daughter's college. I guess I am a loser.

Same here, I am a younger millennial (31), make decent money (nowhere near as you though, only 200k, but wife makes almost the same as well) but until very recently, my parents were still giving me between 24k and 30k a year. I am an immigrant (parents still abroad) and this was just their way of helping and making sure we are fine (and they don't take no for an answer). Wife is also an immigrant, and her parents send her money to this day still (but lower amount, like 10k a year). Lol don't think we are losers either, we worked hard to get to the incomes we currently have. Any money they gave just got moved to emergency fund/stock market.

This is just the way parents of immigrants work/think, they like to make sure that their children are fine and taken care of. And whenever I end up having children, I hope that I will be in a place (financially) to be able to do the same (when the time comes).

Wealth like that passed on to the next generation has prolonged childhood into adulthood. This is one of the reasons our country is failing. If you and your spouse (or significant other) are not paying for a roof over your head, the food on your table, your car insurance, your phone bill, for yourself and your 18 and under children (I'll even give you up through undergrad), then you are a child. Generational wealth begets generational infantilism.

PP -- if you have the money that you claim you have and accept money like that from your parents, that is pitiful. Seems everyone wants to be a hereditary oligarch these days. Do better. Tell your parents to do more for the charities they may already support or find new ones.

We have a family foundation that donates 6 figures a year on top of the gifts they give us. I truly don't understand why you care.

This is such gaslighting. The pie isn’t actually infinite, and you know that. If you showed up to compete in your championship tennis match and the scoreboard showed that your opponent had already been credited with two sets, would you care?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m in a big extended family with generational wealth. I benefit from it, and I will pass it on.

I gotta say, this idea of subsidizing doesn’t bother me. If my kids are happy and healthy and fulfilled, I don’t really care if they use trust money or a salary or some combo to pay their bills. There’s no prize when you die for a pile of W2s. The very few people in my extended family who really made piles of money were all entrepreneurs anyway. Boom and bust types.

It would be kind of crazy to me to have a bunch of assets and not change your life at all.

Agree with all of this, but as was said in a previous comment, I just want the rich kids to pay TAXES on this unearned income. That doesn’t seem like too much to ask.

Well, someone pays it. You can put assets in a trust that protects them from the estate tax for generations. But the trust pays income tax and capital gains taxes, and then if you take a distribution from the trust, you pay income tax on that (depend on the details yada yada). But then if you give money from that distribution to your adult kid, yeah, you’re good to go up to the annual or lifetime exemption.

I hear what you’re saying that you feel like the gift transfer should be a taxable event, and it is! But only after the annual & lifetime exemptions.

The policy around all that is complicated because if you don’t have a big exemption, you’re going to force the sale of a lot of privately held businesses. It’s not like everyone is just sitting on piles of cash.

Yeah, I don’t give a single shit if that happens. It should all be treated as income and taxed at the same rate as earned income at the time it is revealed. Unless you think people shouldn’t have to pay income taxes until they reach some lifetime exemption, it’s fundamentally unfair and un American.

But the rich people are always full of excuses as to why THEIR handouts are totally okay.

Well not okay, but just it would be impractical for assets without a ready market. I think it would make more sense to have higher capital gains, personally. Because people dying can be kind of tricky. They don’t do it on a schedule. So if you have a privately held business, if there were no exemption and you get up around the limit, it becomes really difficult to plan for an unlikely but not THAT unlikely giant tax bill/forced sale.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are surrounded by this in our neighborhood and private school. I don't begrudge the ones who have down payments or their kid's tuition paid by parents. If they work, they get to choose jobs based on what interests them rather than what it pays. Since I'm not looking for it, it often takes me a while to realize that this is the case but it doesn't usually change my opinion of them and I never ask about it. It's fortunate and lucky and none of my business. Obviously if someone is obnoxious or complains about it, it's hard to have respect for them but I don't see that very often.

Neither DH or I have had any support from family since we left home at 18. We're grateful for the life we've built and can afford a good house, vacations, private school. I never thought I'd have those things and I just try to enjoy it. I am teaching my kids to work hard but I'd love to make their lives a little better/easier if we have the means when we're older.

And how old are you? Are you honestly telling us that your children will get no help from you buying a house? What did you do at 18 that you were on your own? When was this? Do you think your kids can afford the house with regular jobs like you did?

Many young adults have jobs that will afford them a house on their own. My kid’s starting job at 21 pays over $250k and my kid already has over $150k saved of their own money from internships and investments (maybe $5k of that total came from family gifts). Heck, he has a classmate that will earn $450k out of college.

Honestly, this has hasn’t changed much in the past 30 years in terms of some kids picking lucrative professions and others not.

I am in the camp of making wealth transfers for estate planning…but it’s debatable if my kid “needs it”.

What jobs pay 250 and 450 straight out of undergraduate? I have never heard of this. Also have never heard of anyone saving 150k from internships. Maybe a law student saves something for a swanky summer internship but not money like that!

Like 0.2% of new college graduates will make this by working in the upper echelons of finance for companies like Citadel and Jane Street.

The parents of these kids just like to brag about this even though they know that this has no relevance for the overwhelming majority of 22-year-olds.

Know kids working at AI start-ups, FAANG, hedge funds, P/E shops, investment banking, etc. that are making anywhere from $250k - $500k out of college. Facebook kid is getting paid $450k to start...they have a whole pay system based on how you rank as a summer intern and this kid was ranked as one of their 3 best interns internationally.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are surrounded by this in our neighborhood and private school. I don't begrudge the ones who have down payments or their kid's tuition paid by parents. If they work, they get to choose jobs based on what interests them rather than what it pays. Since I'm not looking for it, it often takes me a while to realize that this is the case but it doesn't usually change my opinion of them and I never ask about it. It's fortunate and lucky and none of my business. Obviously if someone is obnoxious or complains about it, it's hard to have respect for them but I don't see that very often.

Neither DH or I have had any support from family since we left home at 18. We're grateful for the life we've built and can afford a good house, vacations, private school. I never thought I'd have those things and I just try to enjoy it. I am teaching my kids to work hard but I'd love to make their lives a little better/easier if we have the means when we're older.

And how old are you? Are you honestly telling us that your children will get no help from you buying a house? What did you do at 18 that you were on your own? When was this? Do you think your kids can afford the house with regular jobs like you did?

Many young adults have jobs that will afford them a house on their own. My kid’s starting job at 21 pays over $250k and my kid already has over $150k saved of their own money from internships and investments (maybe $5k of that total came from family gifts). Heck, he has a classmate that will earn $450k out of college.

Honestly, this has hasn’t changed much in the past 30 years in terms of some kids picking lucrative professions and others not.

I am in the camp of making wealth transfers for estate planning…but it’s debatable if my kid “needs it”.

What jobs pay 250 and 450 straight out of undergraduate? I have never heard of this. Also have never heard of anyone saving 150k from internships. Maybe a law student saves something for a swanky summer internship but not money like that!

Like 0.2% of new college graduates will make this by working in the upper echelons of finance for companies like Citadel and Jane Street.

The parents of these kids just like to brag about this even though they know that this has no relevance for the overwhelming majority of 22-year-olds.

Know kids working at AI start-ups, FAANG, hedge funds, P/E shops, investment banking, etc. that are making anywhere from $250k - $500k out of college. Facebook kid is getting paid $450k to start...they have a whole pay system based on how you rank as a summer intern and this kid was ranked as one of their 3 best interns internationally.

Yeah, so that sounds pretty attainable.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are surrounded by this in our neighborhood and private school. I don't begrudge the ones who have down payments or their kid's tuition paid by parents. If they work, they get to choose jobs based on what interests them rather than what it pays. Since I'm not looking for it, it often takes me a while to realize that this is the case but it doesn't usually change my opinion of them and I never ask about it. It's fortunate and lucky and none of my business. Obviously if someone is obnoxious or complains about it, it's hard to have respect for them but I don't see that very often.

Neither DH or I have had any support from family since we left home at 18. We're grateful for the life we've built and can afford a good house, vacations, private school. I never thought I'd have those things and I just try to enjoy it. I am teaching my kids to work hard but I'd love to make their lives a little better/easier if we have the means when we're older.

And how old are you? Are you honestly telling us that your children will get no help from you buying a house? What did you do at 18 that you were on your own? When was this? Do you think your kids can afford the house with regular jobs like you did?

Many young adults have jobs that will afford them a house on their own. My kid’s starting job at 21 pays over $250k and my kid already has over $150k saved of their own money from internships and investments (maybe $5k of that total came from family gifts). Heck, he has a classmate that will earn $450k out of college.

Honestly, this has hasn’t changed much in the past 30 years in terms of some kids picking lucrative professions and others not.

I am in the camp of making wealth transfers for estate planning…but it’s debatable if my kid “needs it”.

What jobs pay 250 and 450 straight out of undergraduate? I have never heard of this. Also have never heard of anyone saving 150k from internships. Maybe a law student saves something for a swanky summer internship but not money like that!

Like 0.2% of new college graduates will make this by working in the upper echelons of finance for companies like Citadel and Jane Street.

The parents of these kids just like to brag about this even though they know that this has no relevance for the overwhelming majority of 22-year-olds.

Know kids working at AI start-ups, FAANG, hedge funds, P/E shops, investment banking, etc. that are making anywhere from $250k - $500k out of college. Facebook kid is getting paid $450k to start...they have a whole pay system based on how you rank as a summer intern and this kid was ranked as one of their 3 best interns internationally.

Yeah, so that sounds pretty attainable.

I was at a FAANG type start up of a company founded only 10 years ago worth around 50 billion still pre-IPO. They have 29 year olds in the Audit, Compliance, Fraud, Operations, IT areas who started at 21-24 who are multi millionaires. The stock has gone up a lot. The April 2020 Stock grant from COVID alone is now worth 10X. The OG people. And they are like first 100 are multi millionaires and first 2,000 pre-Covid are pretty rich.

Klarna for instanc about to IPO and folks at their Ohio office will be rich and in DC the Cava IPO made folks very rich

[Anonymous]

Anonymous wrote:

Anonymous wrote:I’m in a big extended family with generational wealth. I benefit from it, and I will pass it on.

I gotta say, this idea of subsidizing doesn’t bother me. If my kids are happy and healthy and fulfilled, I don’t really care if they use trust money or a salary or some combo to pay their bills. There’s no prize when you die for a pile of W2s. The very few people in my extended family who really made piles of money were all entrepreneurs anyway. Boom and bust types.

It would be kind of crazy to me to have a bunch of assets and not change your life at all.

Agree with all of this, but as was said in a previous comment, I just want the rich kids to pay TAXES on this unearned income. That doesn’t seem like too much to ask.

Their family/parents paid taxes on the income already. If they are under 18 and/or a college student, you can simply pay their expenses. It's also easy to pay their expenses when older and not get caught. You just use a family CC that you pay for.

Or you simply gift the $19K/year per person

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m in a big extended family with generational wealth. I benefit from it, and I will pass it on.

I gotta say, this idea of subsidizing doesn’t bother me. If my kids are happy and healthy and fulfilled, I don’t really care if they use trust money or a salary or some combo to pay their bills. There’s no prize when you die for a pile of W2s. The very few people in my extended family who really made piles of money were all entrepreneurs anyway. Boom and bust types.

It would be kind of crazy to me to have a bunch of assets and not change your life at all.

Agree with all of this, but as was said in a previous comment, I just want the rich kids to pay TAXES on this unearned income. That doesn’t seem like too much to ask.

Well, someone pays it. You can put assets in a trust that protects them from the estate tax for generations. But the trust pays income tax and capital gains taxes, and then if you take a distribution from the trust, you pay income tax on that (depend on the details yada yada). But then if you give money from that distribution to your adult kid, yeah, you’re good to go up to the annual or lifetime exemption.

I hear what you’re saying that you feel like the gift transfer should be a taxable event, and it is! But only after the annual & lifetime exemptions.

The policy around all that is complicated because if you don’t have a big exemption, you’re going to force the sale of a lot of privately held businesses. It’s not like everyone is just sitting on piles of cash.

Yeah, I don’t give a single shit if that happens. It should all be treated as income and taxed at the same rate as earned income at the time it is revealed. Unless you think people shouldn’t have to pay income taxes until they reach some lifetime exemption, it’s fundamentally unfair and un American.

But the rich people are always full of excuses as to why THEIR handouts are totally okay.

I pay taxes on all our income. If I want to purchase a new car for my 23 yo, I'm going to go ahead and do just that, same for furniture when they move into their first apartment/etc. They are my kids and we will help them get launched. It's not really any different than me spending the money on Myself or my spouse. It's all money being spent to help the economy. And we paid 38%+ taxes, medicare and State taxes on it already.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'm over 50 and have never met anyone like this. What kind of loser would accept money from parents/family? It's not that hard to just get a job and pay your bills in the US, assuming you didn't have kids before finishing college.

Millennials do all the time and see nothing wrong with it.

DP millennials are 35-40 years old. If they are living off the parents dole, then they are losers.

I am a millennial and made 1.1M last year. My parent's give me $36k a year because they are wealthy. $10k went to charity and the rest was saved for my daughter's college. I guess I am a loser.

Same here, I am a younger millennial (31), make decent money (nowhere near as you though, only 200k, but wife makes almost the same as well) but until very recently, my parents were still giving me between 24k and 30k a year. I am an immigrant (parents still abroad) and this was just their way of helping and making sure we are fine (and they don't take no for an answer). Wife is also an immigrant, and her parents send her money to this day still (but lower amount, like 10k a year). Lol don't think we are losers either, we worked hard to get to the incomes we currently have. Any money they gave just got moved to emergency fund/stock market.

This is just the way parents of immigrants work/think, they like to make sure that their children are fine and taken care of. And whenever I end up having children, I hope that I will be in a place (financially) to be able to do the same (when the time comes).

Wealth like that passed on to the next generation has prolonged childhood into adulthood. This is one of the reasons our country is failing. If you and your spouse (or significant other) are not paying for a roof over your head, the food on your table, your car insurance, your phone bill, for yourself and your 18 and under children (I'll even give you up through undergrad), then you are a child. Generational wealth begets generational infantilism.

PP -- if you have the money that you claim you have and accept money like that from your parents, that is pitiful. Seems everyone wants to be a hereditary oligarch these days. Do better. Tell your parents to do more for the charities they may already support or find new ones.

We have a family foundation that donates 6 figures a year on top of the gifts they give us. I truly don't understand why you care.

This is such gaslighting. The pie isn’t actually infinite, and you know that. If you showed up to compete in your championship tennis match and the scoreboard showed that your opponent had already been credited with two sets, would you care?

Well in life, there will ALWAYS be someone who has it "better than you". So while you won't see them "credited with two sets" you might see that they grew up rich and playing tennis from age 5+ with private lessons with the best instructors, and ability to practice hours a day because they had an indoor court at the house and didn't have to work a part time job to earn money for life. Versus the tennis star whose parents struggled to help them due to being Middle class. See, that is how life works. Someone will always have advantages.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m in a big extended family with generational wealth. I benefit from it, and I will pass it on.

I gotta say, this idea of subsidizing doesn’t bother me. If my kids are happy and healthy and fulfilled, I don’t really care if they use trust money or a salary or some combo to pay their bills. There’s no prize when you die for a pile of W2s. The very few people in my extended family who really made piles of money were all entrepreneurs anyway. Boom and bust types.

It would be kind of crazy to me to have a bunch of assets and not change your life at all.

Agree with all of this, but as was said in a previous comment, I just want the rich kids to pay TAXES on this unearned income. That doesn’t seem like too much to ask.

Their family/parents paid taxes on the income already. If they are under 18 and/or a college student, you can simply pay their expenses. It's also easy to pay their expenses when older and not get caught. You just use a family CC that you pay for.

Or you simply gift the $19K/year per person

They need a lot more than that.

When I was in HS, the limit was $10k a year and that's what my grandmother gave me. I went to Visi and that was it's cost per year. Now, the limit is $19k but visi is $39k.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m in a big extended family with generational wealth. I benefit from it, and I will pass it on.

I gotta say, this idea of subsidizing doesn’t bother me. If my kids are happy and healthy and fulfilled, I don’t really care if they use trust money or a salary or some combo to pay their bills. There’s no prize when you die for a pile of W2s. The very few people in my extended family who really made piles of money were all entrepreneurs anyway. Boom and bust types.

It would be kind of crazy to me to have a bunch of assets and not change your life at all.

Agree with all of this, but as was said in a previous comment, I just want the rich kids to pay TAXES on this unearned income. That doesn’t seem like too much to ask.

Their family/parents paid taxes on the income already. If they are under 18 and/or a college student, you can simply pay their expenses. It's also easy to pay their expenses when older and not get caught. You just use a family CC that you pay for.

Or you simply gift the $19K/year per person

They need a lot more than that.

When I was in HS, the limit was $10k a year and that's what my grandmother gave me. I went to Visi and that was its cost per year. Now, the limit is $19k but visi is $39k.

Don't know what Visi is, but if it's educational or medical, anyone can pay those bills without it going against the yearly gift tax amount. Also, not that many people have to worry about the Federal Gift tax limit currently (more will if it goes down to $5M). More have to worry about State estate taxes though

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m in a big extended family with generational wealth. I benefit from it, and I will pass it on.

I gotta say, this idea of subsidizing doesn’t bother me. If my kids are happy and healthy and fulfilled, I don’t really care if they use trust money or a salary or some combo to pay their bills. There’s no prize when you die for a pile of W2s. The very few people in my extended family who really made piles of money were all entrepreneurs anyway. Boom and bust types.

It would be kind of crazy to me to have a bunch of assets and not change your life at all.

Agree with all of this, but as was said in a previous comment, I just want the rich kids to pay TAXES on this unearned income. That doesn’t seem like too much to ask.

Their family/parents paid taxes on the income already. If they are under 18 and/or a college student, you can simply pay their expenses. It's also easy to pay their expenses when older and not get caught. You just use a family CC that you pay for.

Or you simply gift the $19K/year per person

They need a lot more than that.

When I was in HS, the limit was $10k a year and that's what my grandmother gave me. I went to Visi and that was its cost per year. Now, the limit is $19k but visi is $39k.

Don't know what Visi is, but if it's educational or medical, anyone can pay those bills without it going against the yearly gift tax amount. Also, not that many people have to worry about the Federal Gift tax limit currently (more will if it goes down to $5M). More have to worry about State estate taxes though

+1. Just pay the bills directly to the educational or medical entity.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m in a big extended family with generational wealth. I benefit from it, and I will pass it on.

I gotta say, this idea of subsidizing doesn’t bother me. If my kids are happy and healthy and fulfilled, I don’t really care if they use trust money or a salary or some combo to pay their bills. There’s no prize when you die for a pile of W2s. The very few people in my extended family who really made piles of money were all entrepreneurs anyway. Boom and bust types.

It would be kind of crazy to me to have a bunch of assets and not change your life at all.

Agree with all of this, but as was said in a previous comment, I just want the rich kids to pay TAXES on this unearned income. That doesn’t seem like too much to ask.

Well, someone pays it. You can put assets in a trust that protects them from the estate tax for generations. But the trust pays income tax and capital gains taxes, and then if you take a distribution from the trust, you pay income tax on that (depend on the details yada yada). But then if you give money from that distribution to your adult kid, yeah, you’re good to go up to the annual or lifetime exemption.

I hear what you’re saying that you feel like the gift transfer should be a taxable event, and it is! But only after the annual & lifetime exemptions.

The policy around all that is complicated because if you don’t have a big exemption, you’re going to force the sale of a lot of privately held businesses. It’s not like everyone is just sitting on piles of cash.

Yeah, I don’t give a single shit if that happens. It should all be treated as income and taxed at the same rate as earned income at the time it is revealed. Unless you think people shouldn’t have to pay income taxes until they reach some lifetime exemption, it’s fundamentally unfair and un American.

But the rich people are always full of excuses as to why THEIR handouts are totally okay.

Well not okay, but just it would be impractical for assets without a ready market. I think it would make more sense to have higher capital gains, personally. Because people dying can be kind of tricky. They don’t do it on a schedule. So if you have a privately held business, if there were no exemption and you get up around the limit, it becomes really difficult to plan for an unlikely but not THAT unlikely giant tax bill/forced sale.

I mean, there are very easy ways to deal with such an event without forcing a sale. Off the top of my head, why not just have the giant tax bill be on an extended repayment plan like a mortgage or a student loan? Why are the only two options in our world pay it all right now or just kidding, you don’t have to pay anything?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m in a big extended family with generational wealth. I benefit from it, and I will pass it on.

I gotta say, this idea of subsidizing doesn’t bother me. If my kids are happy and healthy and fulfilled, I don’t really care if they use trust money or a salary or some combo to pay their bills. There’s no prize when you die for a pile of W2s. The very few people in my extended family who really made piles of money were all entrepreneurs anyway. Boom and bust types.

It would be kind of crazy to me to have a bunch of assets and not change your life at all.

Agree with all of this, but as was said in a previous comment, I just want the rich kids to pay TAXES on this unearned income. That doesn’t seem like too much to ask.

Their family/parents paid taxes on the income already. If they are under 18 and/or a college student, you can simply pay their expenses. It's also easy to pay their expenses when older and not get caught. You just use a family CC that you pay for.

Or you simply gift the $19K/year per person

Yes, their parents paid taxes when it was their income. Now the kids can pay taxes when it becomes their income. That’s how income taxes work (or should work, anyway).

I mean, my employer already paid taxes on their own income, so why should I have to pay taxes when they give some of it to me in exchange for some form of labor?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m in a big extended family with generational wealth. I benefit from it, and I will pass it on.

I gotta say, this idea of subsidizing doesn’t bother me. If my kids are happy and healthy and fulfilled, I don’t really care if they use trust money or a salary or some combo to pay their bills. There’s no prize when you die for a pile of W2s. The very few people in my extended family who really made piles of money were all entrepreneurs anyway. Boom and bust types.

It would be kind of crazy to me to have a bunch of assets and not change your life at all.

Agree with all of this, but as was said in a previous comment, I just want the rich kids to pay TAXES on this unearned income. That doesn’t seem like too much to ask.

Well, someone pays it. You can put assets in a trust that protects them from the estate tax for generations. But the trust pays income tax and capital gains taxes, and then if you take a distribution from the trust, you pay income tax on that (depend on the details yada yada). But then if you give money from that distribution to your adult kid, yeah, you’re good to go up to the annual or lifetime exemption.

I hear what you’re saying that you feel like the gift transfer should be a taxable event, and it is! But only after the annual & lifetime exemptions.

The policy around all that is complicated because if you don’t have a big exemption, you’re going to force the sale of a lot of privately held businesses. It’s not like everyone is just sitting on piles of cash.

Yeah, I don’t give a single shit if that happens. It should all be treated as income and taxed at the same rate as earned income at the time it is revealed. Unless you think people shouldn’t have to pay income taxes until they reach some lifetime exemption, it’s fundamentally unfair and un American.

But the rich people are always full of excuses as to why THEIR handouts are totally okay.

I pay taxes on all our income. If I want to purchase a new car for my 23 yo, I'm going to go ahead and do just that, same for furniture when they move into their first apartment/etc. They are my kids and we will help them get launched. It's not really any different than me spending the money on Myself or my spouse. It's all money being spent to help the economy. And we paid 38%+ taxes, medicare and State taxes on it already.

But your kid isn’t paying taxes. If Oprah gave your adult kid a car, he’d have to pay taxes on it. If Oprah gives someone else’s poor adult kid a car, she can’t even accept it because she can’t pay the taxes on it. If a person wins the lottery they pay taxes. If a person wins the birth lottery they pay nothing and tell all the little people to stop being such jealous haters.