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To: cgbg
How about a special tax on trust funds? We all know these rich libs have their finances structured into these complicated instruments that preserve their wealth for generations. Maybe we can create taxes that target this. We hear about trust funds all the time, but does anyone really know how they work? I,for one, whould like to know.
22 posted on 11/10/2012 7:02:13 AM PST by beef (Who Killed Kennewick Man?)
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To: beef
Taxing trust funds: I don't think you want to go there. As it exists now, trusts pay income tax on any undistributed income, and the recipients of distributed income pay tax. The only way to squeeze out more is to tax trust principal. Wealth tax is a very slippery slope. If the government starts to hit wealth that's been accumulated despite its best efforts to bleed income, there will be some VERY unhappy voters, Dem as well as GOP.

It's bad enough that wealth gets taxed if its real estate or a car, and that there's all sorts of pension restrictions, but those are disguised wealth taxes.

If what you are thinking of is taxing all accumulated wealth above some amount, I think you'll be sorry. Capital accumulation will be severely affected, and with it jobs and general economic well being. It will be eating the seed corn.

23 posted on 11/10/2012 7:23:39 AM PST by Pearls Before Swine (Cynical about the political process. Who, me?)
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