Inheritance tax as a wealth tax

john_galt

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I'm not advocating for it, but it would be remiss not to follow the increased rhetoric, a wealth tax via increased inheritance tax is coming in Europe..

Lagarde's comments at Davos were interesting.. https://www.independent.ie/business/world/young-people-putting-their-dreams-on-hold-after-financial-crash-christine-lagarde-at-davos-36525480.html

We're a long way from that here, but the immobility of capital is a common theme and with no major party really relishing the wealth tax idea, is inheritance tax the Trojan horse they will use?
 


hammer

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“Wealth taxes are lower today than in 1970. In some countries, more progressive tax systems and wealth taxes (including inheritance taxes) could help fund much-needed social programs for younger citizens.”

We already have them
 

ger12

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Inheritance tax? SSM it now appears has changed that when you watch the acceptance of two friends getting married to avoid tax. Sham marriages are no longer frowned on.

No point in it now.
 

Spirit Of Newgrange

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well the State must surely struggle to make the books balance ? what with corrupt f....kers at the top and pampered scroungers at the bottom of society.
 

john_galt

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Sorry, but that's not my point.. If the rhetoric is increasing, if the younger generation is complaining of the lack of an upwardly mobile society, something will be done.

Whether you believe that there is ample wealth taxes or not, the point is that there is increasing rhetoric around at the moment for something like this..

My question is, if they are not going to implement a wealth tax, is inheritance tax the most likely avenue?
 

hammer

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Sorry, but that's not my point.. If the rhetoric is increasing, if the younger generation is complaining of the lack of an upwardly mobile society, something will be done.

Whether you believe that there is ample wealth taxes or not, the point is that there is increasing rhetoric around at the moment for something like this..

My question is, if they are not going to implement a wealth tax, is inheritance tax the most likely avenue?
We have CAT.

What do they have in France ?
 

john_galt

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If you were to use that logic, CAT would be applicable on full inheritance, as you paid nothing for the asset initially.

The door was opened by Leo last week with his comments about getting a deposit from your family. This is something that the left, imo, will anchor on. Particularly as we are 2-3 years from peak of housing crisis..
 

statsman

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Inheritance taxes are a good thing, IMHO. Inequality is far too often inherited.
 

Congalltee

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Thresholds are far too low for anyone except surviving spouse/partner.
All others should be taxed as unearned income received.
It may be double taxation, but so what? Motoring is taxed multiple times (vrt, 23% vat, insurance, motor tax, petrol duty, 13.5% Vat on service, NCT, plus costs of public private partnership road tolls, parking).
 

john_galt

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My only feelings in it is that in some cases, it leads to inefficiency at the margins. Middle class (particularly in Dublin) are more risk averse than their peer group due to the fact that they have an inheritance coming regardless..

Similarly, educated working class become disenfranchised (particularly with respect to asset accumulation) due to being behind the inheritance group.

Most of society aren't materially impacted as they have built that expectation into their lives..
 

hammer

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If you were to use that logic, CAT would be applicable on full inheritance, as you paid nothing for the asset initially.

The door was opened by Leo last week with his comments about getting a deposit from your family. This is something that the left, imo, will anchor on. Particularly as we are 2-3 years from peak of housing crisis..
Que ?
 

hammer

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Thresholds are far too low for anyone except surviving spouse/partner.
All others should be taxed as unearned income received.
It may be double taxation, but so what? Motoring is taxed multiple times (vrt, 23% vat, insurance, motor tax, petrol duty, 13.5% Vat on service, NCT, plus costs of public private partnership road tolls, parking).
No threshold for spouses.
 

hammer

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I know for a fact that some have shown on a statement of affairs a potential "inheritance" from their living parents as an "asset"

I kid you not.
 

john_galt

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Read that as CGT.. Apologies..

My thoughts are that CAT will be reformed, in 10-15 years, due aging population and current distribution of wealth - a pure wealth tax.
 

hammer

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Read that as CGT.. Apologies..

My thoughts are that CAT will be reformed, in 10-15 years, due aging population and current distribution of wealth - a pure wealth tax.
Possibly.

Its very unusual all the same how it is constituted.

My wife and I could BOTH "gift" each of our kids €3,000 each PER ANNUM with no tax consequence.

So 6 kids X €3,000 x 2 = €36,000 pa tax free.
 

john_galt

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Most people are able to claim that officially off their inheritance, 3k per year for their life, plus the inheritance threshold...

I'm sure you have competitive children, and the monies you provide is not something they rely on, but in many cases people are now drawing down on their inheritance.. Parents writing guarantees on the tax free number, secured against their assets to allow kids to purchase.

All that that has done is allow very able people to not have the "necessity" of their own actions driving their lives, hence ambition might not match their ability..

As I said, mainly at the margins..
 

Paddyc

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Possibly.

Its very unusual all the same how it is constituted.

My wife and I could BOTH "gift" each of our kids €3,000 each PER ANNUM with no tax consequence.

So 6 kids X €3,000 x 2 = €36,000 pa tax free.
Apart from Miriam O'Callaghan, who has 6+ kids and €36,000 spare per annum?
 

hammer

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Most parents struggled with mortgage repayments over 20-25-30 years etc..

If they are lucky enough to be in a position to take some of the stress off their own kids NOW they will.

If by contributing a part of the deposit it enables their kids to live in a better area for the rest of their lives you can be sure they will do it also.

Its called LIFE.
 

brughahaha

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