> the tax system treats unearned income and wealth more favourably than earned income.
The income was taxed when it was earned. What reason is there to tax it twice?
> how you feel about in increase in unearned income flowing to the wealthy I guess.
Or about how you feel about the government's use of it's citizen's resources. Why should wealth earned by the breadwinner of the family, not remain with the family? It's arguably better than expropriating citizen's wealth to fund expaditionary warfare.
Why do you tax income? That's a disincentive to be productive, that's not good - we want people to be productive.
Taxing wealth is basically paying a rent to the society that allows that wealth to exist. Your land in manhattan is only worth $10m because society hasn't gone all Syrian. Your copyright holding over your film is only worth anything because we don't let people freely copy it.
When the wealth is owned by the people who aren't productive, you have a problem. It may be that those that are productive Leave and move elsewhere - who runs your hospital/golf course/power station then.
It may be that the productive say "enough is enough" and decide to invent the guileteen.
Either way when people have less to lose than you, it's a dangerous place to be.
Interesting idea.. so instead of taxing income, you would tax wealth carried from one year to another...
That would massively discourage saving. I'm not sure that's great in the long run. In the short run I'll probably lead to massive growth as every goes to burn their dollars on something :)
(Arguably it might be a low tax, might even limited to people with a lot of wealth)
Saving money is already discouraged by inflation. A wealth tax would be functionally equivalent to a fixed inflation rate, just the numerical values would be different.
Since the numbers would be going down instead of the increasing money supply devaluing savings, I guess people wouldn't like it, because losing wealth would actually feel like losing wealth.
Such a tax would have a lower bound on wealth (that is how it works in all countries with wealth tax). Only wealth above a set limit (say 1 million dollars) would be taxed. It would not affect people's incentive to save. In fact, if it makes wealthy people spend more of their money, that could conceivably be a net positive on the economy as well (less stagnant money).
That would just lead to (further) portfolio diversification, where you buy assets abroad purely as a means to store value instead of keeping all your assets under a single country's control.
saving is a way of trusting tomorrow's generation to repay you for work you did today. If tomorrow's generation don't feel part of that society then why do they owe you a living? You're only as valuable as how productive you are today, your savings are worthless.
However under your assertion, you are already massively discouraging productivity, by taxing it so high.
However rather than taxing monetary wealth via inflation (which targets those who can't hide their wealth in other assets), you tax the assets that are impossible to avoid, namely copyright protection (charge an exponential fee to keep the work in copyright) and land (if you own $10m of land, and your neighbour owes $100k, you should be paying 100 times more for the upkeep of that land, and you can't hide that off shore).
This means tax on dividends goes to zero, tax on productivity goes to zero, and it encourages people to invest and work, not sit there collecting money from just being rich.
And that's good - although fairer if it's only based on the value of the unimproved land, rather than the improvement. We don't want to stop people from demolishing a slum and building a nice house because the taxes will increase, we want them to discourage owning the slum, leaving it abandoned, and waiting for the land to appreciate in value.
Double taxation doesn't mean anything in this context.
We tax transactions, not specific euros. Income tax when an employer pays their employee. Inheritance tax once the money goes from the deceased to the heirs.
These are separate things! And no different than, say, VAT on that iPhone. Sure it's between family members , but in the vast majority of cases all parties are independent adults.
The land you inherit is not "justly yours". It was the previous owner's thing. You are getting it but it is not your divine right, except that you won the birth lottery by being born into this family.
Of course a lot of families also have smaller domains, and it makes since to have some lower limit... But let's not forget people affected by inheritance tax are overwhelmingly very rich. Most of the population ends up with nothing.
> The land you inherit is not "justly yours". It was the previous owner's thing. You are getting it but it is not your divine right, except that you won the birth lottery by being born into this family.
Of course those arguments apply to governments as well, since they don't derive their law-making authority by claim to divinity - at least in modern times. Why should a government be specially privileged over a citizens wishes to provide for their family and/or community after death?
> Of course those arguments apply to governments as well, since they don't derive their law-making authority by claim to divinity - at least in modern times.
You could use that statement to argue about anything a government does. Why does the inheritance tax need a special justification?
Why do laws that appropriate private citizens wealth need to be justified?
Well, the alternative is wonderful stuff like civil forfeiture law. Whereby a policeman without evidence or proof of criminal wrongdoing can take that $2000 in your glovebox in the name of a defacto beneficiary (the state), because on a balance of probabilities he thinks he has a better claim than you do.
>Why do laws that appropriate private citizens wealth need to be justified?
What moral authority does a private citizen have to own land in Manhattan created 3 billion years ago and made valuable by the infrastructure he didn't build and community he charges rent to?
I would argue that indigenous inhabits as private citizens have the better claim by virtue of tradition and generational succession, than the 'state' as defacto beneficiary and law-maker everytime. The dispossession of native peoples by colonial governments is just another example.
Government confiscation of private wealth in the name of perceived inequality, should be examined very carefully when modern economies are structurally indebted, and budget for foreign policy objectives over domestic improvement.
The income was taxed when it was earned. What reason is there to tax it twice?
I paid tax on my income, so when I buy milk at the store, the store shouldn't pay tax because the income was already taxed and the employees there shouldn't pay tax when they get paid, because the income was already taxed.
Taxing a transfer payment is an accounting fiction equivalent to simply providing a larger benefit. (Social Security, by the way, is simply deferred earnings. You may be thinking of Medicare or disability?)
But then it does not make sense to consider the size of the deceased's estate when deciding if the inheritance should be taxed. And the US does precisely that.
Yes it was. It was earned by the person who made the money.
Would you rather all the wealthy people in the world just blow all their money on yachts or something?
Because that is the alternative. Why bother saving money if it is all just going to be confiscated when you die. Instead you should just blow it all on ridiculous things that help nobody but yourself in the immediate time frame.
Yes, I'd rather them blow all their money on yachts. Because then their money would be entering the economy where it would be used to pay for goods and services and employees.
You know what happens to the money when the government taxes an estate?
That money gets put back into the economy in the next calendar year. While it might be good for individuals to have savings, it's better for the economy when money gets spent. The reason that Gary Cohn got so many shrugs when he asked CEOs how many of them would expand businesses with the money from the tax cuts is simple: they hire more people when they have more demand. Making rich people richer or giving rich kids more of their parents' wealth does jack shit for the economy.
That's a false dichotomy, since the yacht builders will be taxed and taxes pay for a good education for all (in a far less arbitrary way than wealthy parents' charity).
Each individual pays income tax once, when they obtain the income.
There’s no double taxation any more than it’s double taxation to tax my income then to tax the entrepreneurs who I do business with.
And while I agree that money staying with a family and creating economic inefficiencies and pointless disparities is better than war, that’s an absurd false dichotomy.
Up until a few weeks ago, people speculated the firmware blobs included a small amount of low-level bootstrap code used to configure IO and to switch from 16 bit to other modes etc.
Nobody suggested there was a parallel multi-process operating system running, with full bus arbitration, and mmio capability.
Edit. Not sure why I am being downvoted reddit style. Every-time these threads come up - it's necessary to trot out an explanation of the basic differences between ARC core, psp, arm cortex and trustzone etc, and who uses what technology, what is known about the software/OSes that are running - jvm versus minix-os, amt versus ME etc, what is new knowledge, what is official, and what has been uncovered from private research. I base my statements about lack of general awareness on these topics from actually following HN submissions.
Just a few days ago, someone in a thread was speculating on using low-level op-codes in bootstrap code to subvert the BIOS, apparently in complete ignorance of the depth of the embedded stack.
Where is Minix OS mentioned? How many preemptive processes are running? Which orgs - internal or external to Intel have review-power or signoff on the code running ?
For another (type-theory) perspective - a 'dynamic language' can be automatically considered weakly typed if it can return an runtime exception due a failure to perform a runtime type coercion, or because the typesystem is not expressive enough to include a proof of totality. That makes the whole dynamic/static versus strong/weak distinction kind of meaningless.
> The functional and imperative languages are weakly typed, i.e. the result of computing the value of an expression e of type T is one of the following: [...]
As a matter ordinary meaning, I also feel it makes sense to talk about more strongly typed languages, because they can express 'stronger' guarantees about behavior. Eg. a proof that the code cannot deadlock.
Do undergraduate fees contribute to a faculty's research funding? And if not why are student fees so high, if there is such a low (albeit understandable) emphasis on undergraduate teaching?
In my country (and all of Europe) no. The fees are a nominal administration fee, which admittedly is crawling higher each year. The government, and the EU, then funds each student, and yeah that money would help with research.
I'd suggest that faculty don't want there to be a low emphasis on teaching, it's just that there aren't enough resources to do the critical tasks first. This is bearing in mind that teaching duties are always fulfilled either way (just not to the satisfaction of some people).
I think our difference in perspective is a result of our experience with different systems. I've met a number of professors who expressed contempt toward the undergraduate population at the Big State U where I did my graduate studies. It's not that they're reluctantly doing a bad job at teaching, they're doing a bad job and they really don't care.
The income was taxed when it was earned. What reason is there to tax it twice?
> how you feel about in increase in unearned income flowing to the wealthy I guess.
Or about how you feel about the government's use of it's citizen's resources. Why should wealth earned by the breadwinner of the family, not remain with the family? It's arguably better than expropriating citizen's wealth to fund expaditionary warfare.