Please provide a reputable source of who "they" is and who says that.

Imo, this is a really stupid idea and depends on the amount of wealth, the way you raise your kids, etc. This is just a common saying that people believe for no reason.

I really don't get how you are basically predicting that your grandkids will be screwed when that is decades away.

 
mitchillen:

Please provide a reputable source of who "they" is and who says that.

Imo, this is a really stupid idea and depends on the amount of wealth, the way you raise your kids, etc. This is just a common saying that people believe for no reason.

I really don't get how you are basically predicting that your grandkids will be screwed when that is decades away.

You must be real fun at parties.

On a side note, the wealth-lasts-three-generations theory is pretty well discussed. A little Googling might help.

 

It's all the way you brought your kids up. I know personally the kid who will inherit Ford company in the future with his cousin and he goes to a great school and is overall a smart guy. So I think that's the way he was brought up by his parents and grandparents.

 

to be brutally honest, I am an opponent of heritage. I do know this sounds strange, so let me explain: if you inherit wealth and in addition work, you earn both a return on your wealth (interest rates, dividends, rent from your tenants if you own property, etc.) and your income. Even though you may be doing exactly the same work as the person sitting next to you in the office and even though you may be equally qualified and skilled, you will earn significantly more than him or her (unless he or she inherited a similar amount as well) due to your return on your investments. So basically you are having more than you actually deserve. and that is creating a huge wealth gap. Don't misunderstand me. I'm not left-wing. I'm pro free-market and I believe in hard work and merit. but I don't like the idea of someone having more simply because of good luck (which basically equals heritage).
I even admire people who earn a lot (if they deserve it). I have enormous respect for high-performers. but I simply cannot stand people who are lazy and yet millionaires due to their parents. In my opinion, government shouldn't raise the income tax (as that would tax merit and hard work), but rather should increase the heritage tax extremely. So long story short: Maybe your grandchildren won't benefit from your money. But that is nothing to worry. It is something positive. They ought to work hard for their money themselves (just like you as a first-generation person with money)

 
Best Response
UK2013plus:

to be brutally honest, I am an opponent of heritage. I do know this sounds strange, so let me explain:
if you inherit wealth and in addition work, you earn both a return on your wealth (interest rates, dividends, rent from your tenants if you own property, etc.) and your income. Even though you may be doing exactly the same work as the person sitting next to you in the office and even though you may be equally qualified and skilled, you will earn significantly more than him or her (unless he or she inherited a similar amount as well) due to your return on your investments. So basically you are having more than you actually deserve. and that is creating a huge wealth gap.
Don't misunderstand me. I'm not left-wing. I'm pro free-market and I believe in hard work and merit. but I don't like the idea of someone having more simply because of good luck (which basically equals heritage).
I even admire people who earn a lot (if they deserve it). I have enormous respect for high-performers. but I simply cannot stand people who are lazy and yet millionaires due to their parents.
In my opinion, government shouldn't raise the income tax (as that would tax merit and hard work), but rather should increase the heritage tax extremely.
So long story short: Maybe your grandchildren won't benefit from your money. But that is nothing to worry. It is something positive. They ought to work hard for their money themselves (just like you as a first-generation person with money)

I completely disagree. Not much more to say...
 
bengigi:
UK2013plus:

to be brutally honest, I am an opponent of heritage. I do know this sounds strange, so let me explain:
if you inherit wealth and in addition work, you earn both a return on your wealth (interest rates, dividends, rent from your tenants if you own property, etc.) and your income. Even though you may be doing exactly the same work as the person sitting next to you in the office and even though you may be equally qualified and skilled, you will earn significantly more than him or her (unless he or she inherited a similar amount as well) due to your return on your investments. So basically you are having more than you actually deserve. and that is creating a huge wealth gap.
Don't misunderstand me. I'm not left-wing. I'm pro free-market and I believe in hard work and merit. but I don't like the idea of someone having more simply because of good luck (which basically equals heritage).
I even admire people who earn a lot (if they deserve it). I have enormous respect for high-performers. but I simply cannot stand people who are lazy and yet millionaires due to their parents.
In my opinion, government shouldn't raise the income tax (as that would tax merit and hard work), but rather should increase the heritage tax extremely.
So long story short: Maybe your grandchildren won't benefit from your money. But that is nothing to worry. It is something positive. They ought to work hard for their money themselves (just like you as a first-generation person with money)

I completely disagree. Not much more to say...

so you disagree and believe that some people simply shouldn't need to work if they have rich parents? how could you possibly consider that as just or fair? if you earn a million, that's fine. If you inherit it, pure luck. no work behind that, no accomplishment.

 

Mitt Romney is a good example. He donated what he inherited from his father and only kept what he earn with his own hands. I admire that. to be honest, I also benefit from my parents, as they pay my tuition fees. but sometimes I just think it isn't fair. yes, life is unfair. but that is no reason not to try to make fairer. someone has to start somewhere.

 

define "fair". oh wait you cant

and i'm sure you thought this out when you blurted out your inane plan but think about the effect a "heritage" tax would have upon charities and endowments. most of these programs serve the exact same purpose as a random bloated government program except they are run much more efficient and actually serve the people they're meant to. higher death tax = less money to pass down = less more for charities because i'm going to want to see that my kids get paid first.

ife is not fair and if you believe in that generational theory, shit resets itself anyway. if higher taxes had even a remote chance of ending up improving things that would even out the playing field and granting people access to more opportunities, i would be all for it. unfortunately that's not how government does or ever will operate.

 
UK2013plus:

you could simply exclude endowments and charities from the tax. simple as that

I'm a proud American but if some heritage tax bullshit was to be imposed on individuals, that would be my signal to pack the bags and head out to Hong Kong. Such a step would end "America" as we know it...

 
UK2013plus:

you could simply exclude endowments and charities from the tax. simple as that

so i can setup a charity that my kids work at and receive a salary for doing stuff. what's the difference? i'll give that charity the exact same amount of money that the increase in tax would have been wasted on.

aren't you like in fucking high school or something? maybe you should work for a living before telling other people what they should do with money they earned.

 
whatwhatwhat:
UK2013plus:

you could simply exclude endowments and charities from the tax. simple as that

so i can setup a charity that my kids work at and receive a salary for doing stuff. what's the difference? i'll give that charity the exact same amount of money that the increase in tax would have been wasted on.

aren't you like in fucking high school or something? maybe you should work for a living before telling other people what they should do with money they earned.

ofc this needs to be worked out more in detail. but im not going to on an online forum, seriously... you could ofc include in the law the case you describe. its not like a law has to be only one line...

and no, not high school... btw many of peers (top students) have a similar opinion on this. and even friends of mine who work in finance. so its not like im the only person on earth being critical on heritage

 

It's not fair that some people inherit wealth and others don't. It's not fair that some people can get a perfect SAT in the 8th grade (my cousin) and get a free ride to college. It's not fair that my business partner is a natural extravert and is an amazing salesman as a result and therefore gets paid more money out of the firm's profits than me. It's not fair that one man can spend is whole life building a fantastic small business while another can make some idiotic smartphone app and make millions. It's not fair that one man is 6'6", 320 lbs and can run a 4.8 40-yard dash and get paid millions of dollars to block for a quarterback. It's not fair that one man has an IQ of 160 and can use that intelligence to land a high paid job coding for the NSA. And it's not fair that the guy down the street has a perfect jawline and can get any woman he wants by simply smiling.

Life isn't fair. And confiscating someone's inheritance in the name of fairness will do nothing to end the countless unfair things in life.

 
DCDepository:

It's not fair that some people inherit wealth and others don't. It's not fair that some people can get a perfect SAT in the 8th grade (my cousin) and get a free ride to college. It's not fair that my business partner is a natural extravert and is an amazing salesman as a result and therefore gets paid more money out of the firm's profits than me. It's not fair that one man can spend is whole life building a fantastic small business while another can make some idiotic smartphone app and make millions. It's not fair that one man is 6'6", 320 lbs and can run a 4.8 40-yard dash and get paid millions of dollars to block for a quarterback. It's not fair that one man has an IQ of 160 and can use that intelligence to land a high paid job coding for the NSA. And it's not fair that the guy down the street has a perfect jawline and can get any woman he wants by simply smiling.

Life isn't fair. And confiscating someone's inheritance in the name of fairness will do nothing to end the countless unfair things in life.

I empathize with you DCDepository, but you fail to look at people closely. So closely that you see all of their miseries as clear as you see your own.

Do you count how many years of misery a professional athlete spends in his old age in pain? the wearing down of his body just from a couple years of play. Do you see that the SAT 8th grader maybe never hooked up with a girl ever? Maybe that Salesman has trouble with his wife because he's always bs-ing just like when he's trying to sell something? Maybe the person who inherits money becomes lazy and becomes a hedonist for life, which is basically being an addict.

You forgot to account for 10 years here and there in a persons life where things dont go great. Bad childhood? 15 years right there. Bad old age (physical or mental), thats like 15-30 years. Think. 30 freaking years. thats long. John Nash...couldn't tell what was real. Think of that football athlete who has to live with his body for another 40 years after playing, thats a long long time

 

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