Reply to Do most of you not realize how out of touch and privileged you are?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Yes, a lot of people graduate without student loan debt because parents paid. That's a huge advantage right out of the gate. Then many got help with down payments from mom and dad or inheritance.  More privilege.

It's truly shocking to see how much privilege begets privilege. People who have no student loans and get help with down payments will do the same for their kids and so on.

Time for inheritance taxes and closing the stepup loopholes.  Tax gifts for down payments too as income.[/quote]

You sound jealous.

I am all for raising INCOME taxes on higher incomes (1M+) and sure throw a billionaire surtax on their what do I care. However, I am very against more inheritance taxes and closing step up loopholes. You are uniformed if you think that will provide any meaningful benefit to the bottom line. That money has already been taxed, arguably at a high rate.

My effective tax rate is 35% federally. So If i save 100k in my brokerage account I already paid about 35k in taxes on that deposit. Sure it grows from 100k to 250k. I die. My kids inherit the assets and can now sell the money dad left them. Why does this bother you? If the step up law is changed then people just won't sell the assets (if you're wealthy already) and it will only exacerbate their asset growth. If you inherit the money and you really NEED that money, then you'll be forced to sell and pay taxes on that. In this example, the wealthy win. Is that what YOU want?

If I inherited 1M right now and the account received a step up I may treat myself to something that might stimulate the economy; however, if I receive a 1M inheritance with no step up I am just going to let that continue to accrue for decades. I'll have multiples of that down the road. My kids will inherit 10x what I did, system continues...
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If you never sell your stocks that is fine with me. Someone will spend it eventually. And when they do they should pay taxes on ALL the capital gains.[/quote]

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