Skip to comments.Top 1 percent spreading nearly $60T in assets to heirs, charities
Posted on 06/21/2014 10:13:48 PM PDT by Citizen Zed
Its the greatest migration of wealth ever to hit humanity: The unprecedented flood of money, four times the size of the US gross domestic product, that will be passed along to a younger generation over the next half-century.
Fueled by rising asset prices worldwide and entrepreneurship, Americas multimillionaire and billionaire baby boomers have embarked on an unprecedented $59 trillion transfer of their fortunes, according to researchers.
The cream of Americas 1 percent have already started spreading their money around like confetti to charities, foundations, trusts and to their Gen X and millennial heirs.
(Excerpt) Read more at nypost.com ...
Through the tax code, we allowed tax-exempt foundations to have eternal life, and to have an unaccountable voice to advocate for policies they favor. Foundations do not have shareholders who can vote for a new Board of Directors, they do not have customers who can boycott to force a change in direction or attitude. What they do have is a self -sustaining, self-appointing Board. Further, if a foundation is sufficiently endowed, if it earns more in investment income than it is required to give away each years (only 5%), then the foundation has eternal life.
The solution is to make foundations mortal again. Raise the 5% payout to 7 1/2%. Foundations will then eventually spend themselves out of business. We will benefit from the increased tax revenue that generates. We benefit as a nation. The founding fathers never envisioned unaccountable voices in the public square, let alone ones exempt from all taxation.
With this boost, existing foundations would push 50% more money out into their recipient base each year. The downside is that leftist causes would get more funding, for a short period. The upside is that soon those foundations would have spent-out their assets and would be out of business. The other upside is that tax-exempt foundations hold an estimated 4% of the GDP in their portfolios and forcing this money out of investments and into the economy would create jobs and tax revenues for government at all levels.
Well, that’s terrible.
They worked so hard, created wealth and a better living for millions and they want to leave a little something for their kids...beside debt that will crush them. ..
I think these authors are nuts.
Besides, who cares if they give their wealth to their children or charities? That’s better than giving it to the government by a big margin
The answer is not higher taxes. I’m sure there is a better way but higher taxes is probably not it.
How can any foundation that has income-earning investments be tax-exempt?
Yeah just what we need, additional “revenue” for the crooks in Washington. To waste, buy votes and get Drunk on the power.
Next up, the billions sitting in private IRA, TSA, personal retirement funds. Oh how much better we “all” would be if it was in the hands of government agencies rather than the people that saved and scrimped for it! Because only the government knows how to save, sacrifice and budget expenditures or plan for the future. /s
Not just No. Hell No.
So the plumber that grew his net worth to X number of million doesn't have to hire a team of lawyers ( yes I know it is above 5 million ) to pass it a long, especially his business, he built that. It is on the lower end I am concerned with. Level the playing field for all with no estate taxes, it's not their money!
This story is repeated every two or three years, usually as a Sunday Weeper Piece in a big city newspaper. A typical account contains a sidebar on “three generations of poverty” assumably related to this development.
Because that's the way it is!
(Think: Churches owning stock in companies quoted on the NYSE, etc.)
>>Further, if a foundation is sufficiently endowed, if it earns more in investment income than it is required to give away each years (only 5%), then the foundation has eternal life.<<
What percentage of foundations do you believe actually restrict their assistance to benefactors to 5%?
Who can blame them. They are just trying to keep the govt from getting its mitts on their money. I have read that the rick are fleeing the US and I can’t say as I blame them for that either.
The best thing to do is try to mimic the rich and put your assets in trusts etc to protect them.
The Clintons have their own way of doing this. They contact their buddies in the news media, and get their daughter a job for $600,000 appearing on TV for a few minutes.