author: George Eaton
Death is the most convenient time to tax rich people
- UK
- just 5 % pay inheritance tax
- up to 1m pounds may be transferred tax free
- no tax below 325,000 individual or 650,000 couple income
- gross unequal distribution in wealth and income
- “land of the baronet and the banker, the aristocrat and the asset stripper”
- worst of capitalism combined with worst of feudalism
- equality of opportunity? what this?
- US
- George W Bush wanted to reduce the inheritance tax until it was temporarily dropped in 2010
- Donald Trump doubled paying threshold (5.5M)
One would not choose the 2020 Olympic team “by picking the eldest sons of the gold-medal winners in the 2000 Olympics”.
& Warren Buffet → would lead to “wealth aristocracy”
- half of European Billionaires inherited their wealth
Solution? Lifetime gift tax
- all gifts 7 years before death are tax-free
- within 7 years only above 125,000 will be taxed like normal income
- means of avoidance
- agricultural land
- unquoted business assets
- earlier transfer of assets
- not a “death tax” anymore, since receivers are taxed
- Ireland has this: 33% above 320,000 transfer