Inheriting is becoming nearly as important as working

Re:Inheriting is becoming nearly as important as working by TeaBrain on Saturday March 01, 2025 @03:57PM (#43223609)

Banks are also taxed on the interest from the loans. Loans backed by assets are not just free untaxed money as you seem to think they are. If an entity is unable make the payment on a bank loan, then they would be subject to having their collateral seized, and the bank would then eventually sell the assets, which would be subject to capital gains.

I think it would be more realistic to heavily tax inheritance and re-evaluate trust based loopholes.

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Re:Inheriting is becoming nearly as important as working by danenania on Saturday March 01, 2025 @04:41PM (#43223978)

> Loans backed by assets are not just free untaxed money as you seem to think they are.

I mean, you’re clearly moving the goalposts here. We’re talking about tax on unrealized gains for the wealthy, not sales tax, property tax, or taxes on the bank.

If you’re able to keep taking out new loans to pay off the old loans until you die, with an appreciating “unrealized” asset as collateral, then yes all that money is effectively tax free if we’re talking about income tax and capital gains.

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Re:Inheriting is becoming nearly as important as working by jb3689 on Sunday March 02, 2025 @05:44AM (#43229166)

I believe the previous poster was arguing that taxation still exists at a macro level, i.e. money is sucked out of the economy. It doesn’t matter so much who paid the taxes. The wealthy pay the interest.

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