[ExI] The Dogs of Immortality

Kevin Freels kevinfreels at insightbb.com
Wed Jul 16 17:22:57 UTC 2008


> 
> I pretty much agree.  What I am wondering is if anyone 
> thinks sales taxes 
> and gift taxes are fair, while inheritence taxes are not.  
> I can better 
> understand someone who supports all these taxes or none of 
> them.  But I am 
> more confused by the idea that income and gifts should be taxed, 
> but not 
> inheritence.
> 
> --
> 
I admit I had rethink that one. At first It appeared I was letting my emotional side get the better of me. I felt that since the income tax had already been paid for the income received. What was left had been saved. Then it was given to someone else who would then spend it and pay taxes on that end as well. This is all true, but there is nothing special about the inheritance tax that doesn't apply to pretty much all taxes. I'm no big fan of taxes, but neither am I willing to accept that a taxless society would be superior. 

With that in mind, I was about to change my view to be more consistent. I would find it much easier to accept it if inheritance were treated as regular income for the recipient and nothing more. Gift income should be the same. I could see no reason to tax them differently than regular income. 

But then I realized something. Taxes at some point have to start at some kind of base. If that base is the income of a person or corporation, then that is fine. At that point, it has been taxed. End of story. Or you could go the other way, tax what is spent only. This makes sense in a way as well. Doing both is overkill if you ask me. But both are points of supply and demand. When income is created or products are purchased there is a net benefit to the economy and taxing it in theory grabs a portion of that net benefit. But money being gifted from one person to the next when nothing if value is created or produced does not produce a benefit to the economy or anyone else. It just moved. There is no reason to tax it. If that person invests it and makes a profit, then he can be taxed on the profit. If and when he spends it, he will pay that tax as well. But money just changing hands without the creation of additional wealth to me does not justify a tax. So yes, income and sales taxes are indeed different from gift and inheritance taxes and now I am against gift taxes as well. :-)


Tha



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