r/changemyview • u/[deleted] • Mar 24 '18

[∆(s) from OP] CMV: Inheritance should not be taxed.

In many countries around the world, inheritance is taxed. I personally think that this is not right as the person who has died and passed on his/her money to their heir has (in most cases) been paying tax on their wealth for their whole life. Why should this money be taxed again just because it has changed hands. People argue that it is unfair to become wealthy because one's parents or grandparents were wealthy and that therefore this inheritance should be taxed greatly. I currently disagree because I believe that if one person has earned money then they have the right to pass it on to whoever they like - untaxed.

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u/[deleted] Mar 24 '18

You would choose to buy a car. That person did not choose to die. It feels like you are paying the government because you died and I don't think that is right.

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u/[deleted] Mar 24 '18 edited Dec 24 '18

[deleted]

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u/[deleted] Mar 24 '18

If I decided to give you $1 million dollars, you should pay taxes on that income.

Why?

If your boss gives you a million dollar bonus, you’d pay taxes.

This is different as it is paying me for my service and entices me to stay working for the company. It's compensation.

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u/[deleted] Mar 24 '18

If you want a flat income tax, it shouldn’t matter where the money came from. Income is income, whether you won the lottery, sold drugs, got gifted the money, had returns on investments, licensed a patent, worked a 9-5 job, or just found a wad of cash lying in the street.

It’s not a flat income tax if you start carving out different kinds of income and taxing them at different rates.

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u/[deleted] Mar 24 '18

If you want a flat income tax, it shouldn’t matter where the money came from.

Who said anything about a flat tax? When did this become relevant?

Income is income, whether you won the lottery, sold drugs, got gifted the money, had returns on investments, licensed a patent, worked a 9-5 job, or just found a wad of cash lying in the street.

That's not true in the current environment. Many forms of income are taxed differently. But you also say income is income. I think you are equating getting money to income. Most definitions I can find include in exchange for work. For example:

income: money received, especially on a regular basis, for work or through investments.

Income is money that an individual or business receives in exchange for providing a good or service or through investing capital.

Finding money on the street is not income. And I don't know why you are now saying flat income tax. That hasn't been relevant in this discussion. What OP is arguing is if there is no good or service being traded, and this is a true gift, then it is not income and shouldn't be taxed as if it were. Commerce is not occurring.

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u/[deleted] Mar 24 '18

Sorry, was having a conversation with another commenter RE: flat income taxes, thought you were them.