mandelbrot
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If this tax existed I for one would be handing my kids the inheritence in cash over time. And so would everybody else.
And I suppose that's the point - would it be better to have money in circulation in the economy, being spent by the younger generation, than being kept out of the productive part of the economy by the stockpiling of the older generations?
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They spent much of it buying property from older people. We saw a massive credit funded transfer of wealth from young to old throughout the boom.Well the younger generation certainly spent the money in the last 10 years and look where that got us.
Yes, and knowing that when your parents die you won't get a big lump sum will only help this.Purple isn't being thrifty and careful with money a good thing, something that should be encouraged?
Why not do both? Property taxes are a good way of keeping money out of non-productive assets.Perhaps if people were encouraged to invest in entreprenurship/business that would be more fruitful that what you are proposing.
Hi Tommy,
I'm not suggesting that this is a fix for our current problems, rather a fairer way of taxing people in the long term.
I agree that a mechanism would have to be found to keep family businesses in operation.
Also, I dont agree that inheritance tax means that family businesses will get liquidated on the owners death. If the business is sucessful, then someone will be willing to buy it as a going concern.
Purple, why do you think family businesses should be exempt? Shouldnt they be subject to the same rules as other wealth? Why is it ok for someone to get the benefit of e.g. inheriting a business worth €1m, but not allowed to get the benefit of inheriting property worth €1m or cash?
Surely if a business is worth say 1m CAT of €100,000 payable over say 5 years would not be too much.
At normal Revenue interest rates, this would cost almost €25,000 per year. How many businesses have that sort of money lying around?
Anyway, businesses are paying enough tax as it is especially after the recent VAT hikes. I can't understand the fetish with taxing them until the pips squeak.
I agree nobody should get a free ride ... everyone should live by the fruits of their own labour and not inherited benefits. I wouldnt tax heavely on inherited businesses or farms just assets like cash and houses... afterall we have CGT to deal with realised earnings from the sale of an inherited business or farm...ie i dont mind a child inheriting a Job from his parents business , if he works hard in that Job he'll benefit for his efforts ... if he decided to sell the business then he should be taxed heavely.
Did not realise that the CAT interest was 25%pa. What I would propose is that people claiming Ag Relief or Bus. Asset Rel would get a 5 year installment agreement interest free as a compromise.
Anyone earning over 32800 paying 52%, CT at 12.5% don't think thats taxing them until the pips squeak as you put it.
It would also make it virtually impossible for any family business to ever afford to transfer its ownership within the family to the next generation, as most firms have their equity tied up in working capital or generally illiquid assets.
I think taxes overall should be lower, rather than raising one to lower another and then a couple of years later another politician decides to raise the latter again so the overall tax take is higher than originally.In principle is it better to have lower income taxes and higher inheritance taxes?
I don’t think anybody should feel entitled to anything, but if a parent decides to leave something to their children then that parent should have the right to do so without the state taking a share. I think it is totally immoral to simply take private property because you think someone has “too much”. That is mob mentality and severely infringes on private property rights. What I do with my private wealth should be of no concern to anybody.Why should anyone feel entitled to inherit their parents wealth (including the family home)?
I agree. I think in general this sort of idea gains popularity because people think of taking something away from “the rich” or “the super rich”. If I was due a large inheritance I would move to a country that has no inheritance tax to completely legally avoid inheritance taxation and return a few years later. The lower the inheritance tax would be the less likely I would choose this approach.If the taxation scenario changes dramatically, people will motivated to find other ways to avoid tax and, indeed, nursing home charges. Shouldn't people to able to leave a house to their children?
Absolutely, it should be nobody’s business what you do with your wealth before or after you die. It is your property and in a free society you should be able to dispose of it as you like.Why? I hate inheritance tax, absolutely hate it. If I choose to work hard all my life and want to then leave the fruits of my labour to my children why should the government of the day get a chunk of that? I earned it, I paid my tax along the way, it's mine now to pass on as I see fit as far as I'm concerned.
No, spending is wealth destroying. When money is “stockpiled” as you say then it doesn’t leave the economy. Saved money is absolutely crucial, as it provides the basis investment in the productive economy. The last thing especially Ireland needs is more spending. What is lacking here is investment, whether directly or indirectly through saving. A wealth tax discourages this.Wouldn't a much fairer tax (I know that is a contradiction in terms!) than inheritance tax be a wealth tax? Tax savings/assets over a certain (reasonably high) threshold to encourage more current spending and less stock piling? Again there would be difficulties in how to implement this but I would see this as a much better way of encouraging current spending (which seems to be the aim yourself and Brendan are striving for here) than a blanket tax grab on inheritance.
Indeed, it has been shown time and time again that increased taxes lead to a higher rate of avoidance and evasion while lowering taxes has the opposite effect.If this tax existed I for one would be handing my kids the inheritence in cash over time. And so would everybody else.
No, spending does not benefit an economy per se, and definitely not an economy that is in trouble. When money is spent there is less money for investment which means there is less money for business expansion, which means there are less jobs. You have to produce before you can consume.And I suppose that's the point - would it be better to have money in circulation in the economy, being spent by the younger generation, than being kept out of the productive part of the economy by the stockpiling of the older generations?
I agree, and personally oppose any kind of inheritance tax, and not because I anticipate any large sum. Here is an example of a friend of my parent’s in Germany. After WWII he was 15, his brother 19 and both his parents had died during the war. The older brother got work and started rebuilding a badly damaged house where the two brothers eventually lived. The older brother never married but lived with the younger brother and his family in the house they rebuilt. Turns out that the area they lived in would become a very popular area of Cologne. When the older brother died he left the house to the younger brother who had to then sell the house because on a teachers salary he was not able to get a mortgage to pay the inheritance tax.
I don’t think anybody should feel entitled to anything, but if a parent decides to leave something to their children then that parent should have the right to do so without the state taking a share.
I think it is totally immoral to simply take private property because you think someone has “too much”. That is mob mentality and severely infringes on private property rights. What I do with my private wealth should be of no concern to anybody.
No, spending is wealth destroying. When money is “stockpiled” as you say then it doesn’t leave the economy. Saved money is absolutely crucial, as it provides the basis investment in the productive economy.
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