Re:A basic income experiment in Kenya
by mantas on Tuesday January 02, 2018 @06:46AM
(#16051333)
I might be lost, but are you talking about about year-over-year real estate tax or "death tax" as in inheritance tax? My comments are based on later.
> That's a different scenario; but, again, there's a straightforward tax answer to it: treat such vehicle use the same way as it is treated with personal use of a company vehicle using the Annual Lease Value rule; the other mechanisms wouldn't apply.
Good luck trying to figure out who is the actual user of a house or a car. What if family shares the vehicle? Tax parents whenever their kid drives?
Let alone that this would, again, much more affect middle class than the uber rich.
> Replacing the estate tax by taxing inheritances as income to the recipients would not reduce the scope of funds taxed both when originally received by the first owner and then again when transferred as inheritance; on the contrary, it would increase it and make it more consistent with the progressive income tax system, with the tax rate when inherited based on the total income of the heir, not the size of the estate.
So you split inheritance on small bits before death to fly under radar. Or split inheritance to different people. Possibly consolidating it back later on. Or do the trust fund trick...
> That's a different scenario; but, again, there's a straightforward tax answer to it: treat such vehicle use the same way as it is treated with personal use of a company vehicle using the Annual Lease Value rule; the other mechanisms wouldn't apply.
Good luck trying to figure out who is the actual user of a house or a car. What if family shares the vehicle? Tax parents whenever their kid drives?
Let alone that this would, again, much more affect middle class than the uber rich.
> Replacing the estate tax by taxing inheritances as income to the recipients would not reduce the scope of funds taxed both when originally received by the first owner and then again when transferred as inheritance; on the contrary, it would increase it and make it more consistent with the progressive income tax system, with the tax rate when inherited based on the total income of the heir, not the size of the estate.
So you split inheritance on small bits before death to fly under radar. Or split inheritance to different people. Possibly consolidating it back later on. Or do the trust fund trick...