General Discussion
In reply to the discussion: The Insanity Of Capital Gains Tax Breaks... [View all]TreasonousBastard
(43,049 posts)deny the risk, presumably reducing investment.
Of course, that's just theory, and the fact is that it becomes simply a game to reduce taxes. One invests for gain, and if no gain happens-- tough shit.
I am more curious why inheritances aren't taxed more. Even though I have personally benefited from this, I don't feel it was fair to get several years of income in one huge swoop and pay nothing for it. Kinda like winning a lottery (which also is exempt from state taxes in many places). There are times when it wouldn't be right to tax a working farm or business out of existence when the kids take it over, but that sort of thing can be dealt with. And remember that trusts are really gifts, so isn't there a gift tax?.
You get a pile of money deposited into your account and you shouldn't have to feel screwed just because you actually worked for it. In a just world, one would think "unearned" income could be taxed at a higher rate.
Follow the money. There is a huge industry out there getting well paid for scheming ways to reduce taxation. There is no well-paid corps of accountants and lawyers finding ways to tax you more.