re: #542 Obdicut

That sets the rate considerably below what someone would pay if they actually earned that money. Can you explain what the rationale is for taxing that income below the level of income tax?

Forgive me for butting in, it’s an interesting topic.

For me, it has to do with privacy. All of the other taxes that you cited (income, sales tax, etc) are relatively transactional in nature. But the freedom to give your already-taxed money to your relatives, as you see fit, feels far more private.

Think of it this way. Let’s say my folks die and want to pass along 5 million to me (not exactly a realistic scenario, sigh). No new net income, business venture, or real wealth creation occurred outside of the little bubble of our family. Our family had 5 million, and we still have 5 million.

I didn’t “make” 5 million. I took over an account. It’s private, therefore different than the taxes i’d rightfully pay if i chose to buy a yacht. I can always choose not to buy a yacht, and therefore save myself the taxes. But my parents can’t choose not to die.

Big difference, there at the end…