Reply to Vox article on inheritance

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]From the article:

"But Wolff also says, surprisingly, that inherited wealth isn’t a huge driver of inequality in America — it actually has had an equalizing effect. And there’s no indication that the next decades will be any different.

The reason is deceptively simple: While much (much!) more money flows among the rich, for middle- and low-income people who receive gifts or inheritance, they represent a larger percentage of wealth. So large, in fact, that for some people, a gift from mom or dad is the thing that will keep them middle class."[/quote]

I'd like to see the data to back this up. Otherwise, I'm calling BS.

But ultimately, I don't care. The current estate taxes (lack thereof) is crazy. We are incentivizing bad things.[/quote]

Working hard, saving, and investing money are not “bad things.”  They are actually good things that society should encourage.  Which is why the tax code does so.[/quote]

I also work hard, save and invest. But I have to pay taxes. I would love a step up in basis for my capital gains. Why do heirs and heiresses get one and not me?[/quote]

Every tax you pay was also paid by the decadent.  And your children are able to inherit on the same tax basis as everyone else.[/quote]

That still doesn't explain why society should give up a step up in basis to heiresses. Why not me, right now, a living person who works for my money? What is the benefit of that? What are estates taxed differently that ordinary income? [/quote]

The same rationale underlies the capital gains tax being lower than income tax.  And gains on sale of a primary residence being mostly exempt from capital gains tax  Both of which you do benefit from.  So, you want to keep the policies you personally benefit from only, which is not how the tax code works.  
[/quote]

This is false. If we wanted to incentivize "investing" everyone would pay the same capital gains rate. The step up in basis on death is not an incentive for anything. It is a giveaway to the wealthy. [/quote]

What exactly is false?  [b]Are you denying that capital gains are taxed at  a lower rate  than income?[/b]  Or that Sales of primary residences are largely exempt from tax?

By your reasoning,  we should get rid of all business related deductions because only people in certain occupations can use them.[/quote]

Doesn't this DISINCENTIVIZE work? Seems pretty messed up to me. [/quote]

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