What extra taxes would you volunteer to pay?

zagubov

Herzlos wrote: »

At the value you paid for it, without any CGT.

Say you bought your family home for £5k in 1950, and then left the same house, now worth £1.5m to your kids in 2018. You've not paid any tax on the growth in value.

You could also argue that IHT is a tax on those least likely to suffer from it, being that they aren't here anymore. It might encourage people to spend money (good for the economy) instead of hoarding it.

This is bang on. You never pay it. You've passed on by then. Your loved ones might pay it although as they never earned the value attributed to it, I'd love to know what makes them hallucinate they're entitled to do so.

It's why America has death taxes. They don't need or want dynasties. The money needs to be recycled to make the economy grow.

GreatApe

zagubov wrote: »

This is bang on. You never pay it. You've passed on by then. Your loved ones might pay it although as they never earned the value attributed to it, I'd love to know what makes them hallucinate they're entitled to do so.

It's why America has death taxes. They don't need or want dynasties. The money needs to be recycled to make the economy grow.

The American death tax kicks in at $22.4 million for a couple and is taxed at 35% and can be avoided with gifts 3 year prior to death.

The UK death tax kicks in at $1 million for a couple and is taxed at 40% and can be avoided with gifts 7 years prior to death

The UK system is too much. In London you can just about pass on a house and not much else and thus is assuming you don't live in zone 1 or 2 or even most of zone 3.

Your not leaving a dynasty your leaving a 3 bedroom terrace
At least £1m per person should be exempt

zagubov

GreatApe wrote: »

The American death tax kicks in at $22.4 million for a couple and is taxed at 35% and can be avoided with gifts 3 year prior to death.

The UK death tax kicks in at $1 million for a couple and is taxed at 40% and can be avoided with gifts 7 years prior to death

The UK system is too much. In London you can just about pass on a house and not much else and thus is assuming you don't live in zone 1 or 2 or even most of zone 3.

Your not leaving a dynasty your leaving a 3 bedroom terrace
At least £1m per person should be exempt

Yes in the UK the thresh-hold should be set lower.

Why's that a problem for anybody?

westernpromise

zagubov wrote: »

as they never earned the value attributed to it, I'd love to know what makes them hallucinate they're entitled to do so.

Neither did you, so I'd equally love to know what makes you hallucinate that you're entitled to it. Why are you more entitled to my money than my family?

LHW99

You could also argue that IHT is a tax on those least likely to suffer from it, being that they aren't here anymore. It might encourage people to spend money (good for the economy) instead of hoarding it.

On the other hand it would more than likely encourage the tax avoidance industry to move up a gear, and encourage the rich to move to a country with less stringent tax provisions, and the less rich to give more away earlier (not altogether a bad thing IMO, but not avoiding money being passed down the generations if that is the aim).

zagubov

westernpromise wrote: »

Neither did you, so I'd equally love to know what makes you hallucinate that you're entitled to it. Why are you more entitled to my money than my family?

It's not your money any more, when you've passed on.

Society will take a chunk of your (un)earnings on your house, should they exist.

economic

zagubov wrote: »

It's not your money any more, when you've passed on.

Society will take a chunk of your (un)earnings on your house, should they exist.

fine if thats how you want it, no one will work too hard, they will work hard enough to live on thats it, no one will want to grow a business if they know it will all go to "society" and no one will bother producing better goods and services as a result.

Son: "Hey dad why aren't you growing your successful business anymore, i thought you enjoyed it?"

Dad: "Yes son i did once, now since Zagubov says all my wealth including my successful business will go to people who did not work for it, i might as well just wind the business down and enjoy the fruits of my labour all these years. I will also pass onto you, my son, some income so to avoid paying higher taxes on my wealth upon my death"

Son: "Thats really sad Dad, you loved what you did but i can see why you don't love it anymore if the wealth will be given away to people who don't deserve it, out of force. And all because Zagubov says so. I know you give to charity and help others but now that you are forced to give it all away on your death, i can totally see why you want to do this, so don't feel too bad, Dad. Its the natural thing to do. Oh Dad do you think i should start my own business and/or work hard in a my chosen career?"

Dad: "No Son, don't bother, theres no need to work hard anymore as it will all be taxed forcefully anyway when you die. Just do a government job, thats where the money is going to these days. Dont expect to do anything great but at least you can pretend to be doing work so you can earn a wage to live on. you dont need to do anything more then that."

Son: "I might as well just commit suicide".

Dad: "Thats another option too, son".

westernpromise

zagubov wrote: »

It's not your money any more, when you've passed on.

Society will take a chunk of your (un)earnings on your house, should they exist.

If it's not mine how is it yours either, or anyone else's? Why the assumption that it defaults to the state? What does a dead person owe the state?

economic

westernpromise wrote: »

If it's not mine how is it yours either, or anyone else's? Why the assumption that it defaults to the state? What does a dead person owe the state?

you could also say if someone on death has wealth that does not belong to him anymore, then someone who has milked the taxpayers by being unproductive should be a slave to society to pay for it.

zagubov

economic wrote: »

fine if thats how you want it, no one will work too hard, they will work hard enough to live on thats it, no one will want to grow a business if they know it will all go to "society" and no one will bother producing better goods and services as a result.

Son: "Hey dad why aren't you growing your successful business anymore, i thought you enjoyed it?"

Dad: "Yes son i did once, now since Zagubov says all my wealth including my successful business will go to people who did not work for it, i might as well just wind the business down and enjoy the fruits of my labour all these years. I will also pass onto you, my son, some income so to avoid paying higher taxes on my wealth upon my death"

Son: "Thats really sad Dad, you loved what you did but i can see why you don't love it anymore if the wealth will be given away to people who don't deserve it, out of force. And all because Zagubov says so. I know you give to charity and help others but now that you are forced to give it all away on your death, i can totally see why you want to do this, so don't feel too bad, Dad. Its the natural thing to do. Oh Dad do you think i should start my own business and/or work hard in a my chosen career?"

Dad: "No Son, don't bother, theres no need to work hard anymore as it will all be taxed forcefully anyway when you die. Just do a government job, thats where the money is going to these days. Dont expect to do anything great but at least you can pretend to be doing work so you can earn a wage to live on. you dont need to do anything more then that."

Son: "I might as well just commit suicide".

Dad: "Thats another option too, son".

I've got broad shoulders and I'll carry the burden of blame for the poor kid's lack of an inheritance.

Although if his dad had more insight he'd realise it's due to his inability to distinguish between simple concepts like "some" and "all".:eek: