Re: OT: Taxes

In article <NohRi.5695$y21.4864@xxxxxxxxxxxxxxxxxxxxxxxxxx>,
joseph_barrett@xxxxxxxxxxxxx says...
John Larkin jjlarkin@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx posted to
sci.electronics.design:

On Tue, 16 Oct 2007 15:28:34 +0100, John Devereux
<jdREMOVE@xxxxxxxxxxxxxxxxxx> wrote:

John Larkin <jjlarkin@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx> writes:

What's equitable about taxing earnings twice?

I don't follow that argument - it is the recipient who is being
taxed, once, for the extra (and unearned!) income.

Actually, if I get dividends from my company, and pass it on to the
kid, it's taxed three times.

The recipient, in this case The Brat, can be taxed for assets that
don't actually exist (like my skills and business contacts and
"goodwill", and the future earnings potential of my company, which
may well evaporate on my death). The company is valued as of the day
*before* I die. So if she has three million dollars more tax
liability than liquid assest, the only rational thing for her to do
is demonstrate that the illiquid assets have little value. The way
to do that is to liquidate the company for its meagre physical
assets (sell the tools, furniture, and inventory at a huge loss, and
burn all the drawings) and liquidate. If I can't put sufficient
bogus trusts and "financial instruments" into place first, that's
exactly what I'll instruct her to do. She wouldn't have a choice
anyhow.

And 16 people would lose their jobs, and the accumulated technology
would be lost, too. Explain to me how that benefits society. I mean,
aside from employing a lot of lawyers and accountants, and making a
lot of money for insurance companies, and keeping me in meetings
with them, when I should be designing stuff.

Your _willful_ incompetence in financial and estate planning will be
punished by your family's and company's financial destruction.

Bull***! One shouldn't have to jump through legal hoops. Hell, one
shouldn't have to have the money to jump through those hoops.

If I pay a plumber with my taxed earnings, and he pays tax on that
payment, is that being "taxed twice"?

Certainly. The government taxes everything it can, as many times as
it can. Since the government is desperate for revenue, and populism
makes most voters jealous of anybody who they think has more that
they do, tax policy is badly skewed away from actually benefiting
the most people. Get used to it.

And knowing this, you somehow expect taxes to be honest or equitable?
The elite (wealthiest) always set up the law to keep them the
wealthiest. Look at the crazy DRM crap.

NO, but I expect anyone with a half a brain to see that the death tax
is *wrong*.

--
Keith
.

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