Reply to What really needs to be fixed in the tax code?

Forum Index » Political Discussion

Reply to "What really needs to be fixed in the tax code?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Rates are unrealistically low. They need to be graduated up greatly. If you're making under 50K, your rate should be 5%. But it should scale upwards quickly from there. After 75K, it should be 90-95%. At 250K, it should be 99%. Likewise for unearned income, which should also be 99%. And I'd also do away with probate completely, with all of an estate up as taxes unless survivors can show cause as to why they should get those assets.

That will even things out and get rid of the huge disparity of wealth in this country, which is really what is driving all the problems in this country. [/quote]
The problem with this, is that it dis-incentivizes saving and preparing for old age and passing on to heirs. I have no issue with people who prefer to plan and save - we should be rewarding that. $5M or $10M to pass on to heirs if one has saved and dies without using it all is more than enough to pass on without taxation. Then kick it in to whatever and that can be scaled too 20% on the next 10M, 40% on the next %50M or whatever.[/quote]
The government has basically zero reason to incentivize passing wealth onto one's heirs. There might be corner cases where a parent dies while a child is a minor and so unable to work, but that's about it. I stand to inherit a decent sum, so I'm not against inheritances. But the government has no reason to create extra incentives for my parents to build up wealth just to pass it to me.

Incentivize saving enough to take care of yourself after retirement, sure, I can see that. But saving more than you'll need in your lifetime, nope.[/quote]

This. There is no societal benefit to the accumulation of intergenerational wealth.

And it's not like the estate tax incentivizes people not to die...[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics