I don't want to 'take it back.' But, I feel donations should not be tax deductible. Why should I subsidize anything someone feels is worth donating for?
IMO, the balance point is setting things up so the default is wealth is not maintained across several generations (3+), even though it can be passed down 1 or 2 generations and can be maintained with care past that point.
PS: I say this with many wealthy friends and family. It's surprisingly destructive and I don't want to setup multi generational wealth for my great grand children.
If we don't tax people when they pass away, the money goes straight to their kids, and then a permanent upper class forms and we know what happened to France...
The US has been about meritocracy, and not an aristocracy. But people want to change that, to the detriment of the country, IMO.
But back to inheritance:
> not maintained across several generations (3+)
You're inventing problems. Inheritance decreases exponentially. Multi 3+ generational wealth is already divided by 64 times (assuming 2 children + spouses). It is not possible without the children putting in significant work themselves. You're inventing problems.
At least we have common ground. Being able to pass on our successes to our children is a large and important motivator in life - one that would be incredibly unwise to remove.
"That’s according to a recent study by two Italian economists, Guglielmo Barone and Sauro Mocetti, who compared Florentine taxpayers way back in 1427 to those in 2011. Comparing the family wealth to those with the same surname today, they suggest the richest families in Florence 600 years ago remain the same now."
England has also had wealth maintained for 28 generations and other old money examples are not hard to find.
I recall that study. They were still a multiple orders of magnitudes less wealthy, and that ignores any wealth/money/work children added themselves since that time. If anything, this study proves my point.
>Europe has family's that have maintained wealth over the past 500+ years.
>England has also had wealth maintained for 28 generations and other old money examples are not hard to find.
That's an excellent example of survivorship bias. Again also not acknowledging any work the kids have put in to maintain that wealth.
For every example of a rich family whose money has been kept for 3+ generations, I could find you 100 examples that dont (not actually, I should probably be getting back to work).
This is a non-issue.
88% of the very wealthy ($30+ million) in the USA made their wealth themselves.
https://www.forbes.com/sites/niallmccarthy/2016/10/10/where-...
...the best source I could find.
The US has been stagnating with lower GDP growth rate over time which will likely change these numbers. Because the low % of inhered wealth is mostly due to large numbers of new wealthy not children of the wealthy losing their money. http://www.lagunabeachbikini.com/images/2014/economy/RGDPgro...
The bar to become a charity could be a lot higher but it's not exactly a rubber stamp.
Donations are really a 3 way tax break, I don't pay taxes on the gift, you don't pay taxes on the gift, and I don't pay income taxes on the money I use as a gift. (The arguable forth deduction is I don't need to realize capital gains before giving a gift.)
PS: The only way to actually lower taxes is to lower spending. Anything else is just shifting the burden to someone else.
That doesn't make sense given the sums we're talking about. If I give someone $100 million (non-charitable), I don't have to pay an extra tax on the giving, I only pay taxes on the income. You're referring to a very specific gift tax scenario.
The majority of the Gates Foundation giving is not within the US. The people on the end receiving should not pay taxes on that as it pertains to the US. Further, the Gates Foundation giving within the US will frequently end up taxed after the gift via income taxes on salaries (whether we're talking about scientists, secretaries or in the field workers receiving foundation dollars to operate as part of a charitable organization).
The scope to the triple tax premise is, in reality, dramatically more narrow.
Here is the actual form: https://www.irs.gov/pub/irs-pdf/f709.pdf
19 If line 18 is less than line 17, enter balance due
If people with blue eyes suddenly did not have to pay taxes then that would be a massive subsidy. If you get a pay check and the taxes are already taken it it's just as much 'your money' as if you got the full paycheck then had to pay taxes after the fact. The point is more money goes out of your paycheck because the US government subsidizes other and often very rich people.