6 Jun 2023 4:07 am
Skans » 05 Jun 2023, 3:46 pm » wrote: ↑ First, I am not jealous over what others have. That really does not matter to me.
But, I find it interesting that you would eliminate the "free" step-up in basis of an asset that transfers upon death. So, you are not a purist when it comes to taxing wealth. Some forms of wealth are ok to be taxed.
But, let's say that you eliminate the death tax (state and federal) but also eliminate the step-up basis on death. How are smart wealthy people going to side-step that step-up basis problem? I'll tell you how they will do it:
- First, no more "growth" investments.
- Next, only invest in dividend investments. These would be companies with high dividend growth rates and high pay-out ratios. Sure, you will be taxed on the dividend income, but what's left over will be plowed right back into buying more shares. More shares = more income, and the "nest of investments" can grow to infinity (theoretically) from generation to generation.
- Dynasties get richer, and working class people are priced out of ever being able to afford these types of investments. Why? Because Trillionaire dynasties will price them out. Don't believe me? Berkshire Hathaway Inc. - Class A NYSE: BRK.AAs of June 5, 2023 • 3:59 PM EDT$499,088.98 / Share
And you want to take it away from them and give it too the government? We need to be taking the wealth away from the government so we can keep more of it. The government has too much of our wealth...and notice how wealthy all the politicians end up.