KeithPratt wrote:The notion that the state can spend money in better ways than people in general is a fallacy. That's why countries like Sweden, Australia and Norway (all decent, "progressive" countries) have abolished Inheritance Tax entirely.
The issue furthermore is that the super-rich will ALWAYS find ways to get out of it - if you tax them too much, they will because they'll have access to lawyers etc. People will always get out of ways to pay tax and if they have the money they will do. There is almost no point in the mantra "well they should pay" because, ultimately, the default setting of virtually all people who have serious amounts of money is that they will pay as little as possible. Furthermore, the fluid nature of money today means that people with cash will devise ingenious mechanisms to avoid paying anything if they can - for every country that says "you will have to pay" there's some little offshore tax haven that will gladly have the money deposited in their country for a modest fee. It is the nature of things.
The idea of inheritance tax is much better than the reality - it taxes those who probably can't really afford it, particularly if, like most people nowadays in the UK, most of the value of the inheritance is tied up in the person's property - with house prices rising continually, your old aunt-who-never-married 2 bed flat in Brixton is suddenly worth £500,000 and then you're taxed at 40% of it. The wealthy can, if they have a lot of capital, essentially bypass it due to that 50,000 page tax code. The Duke of Westminster paid no inheritance tax on an estate of £8 billion.
Tax everyone nominally at 5 to 10% and you'd have a much better income I suspect.
With the current changes inEuropean banking and specifically compliance, thelittle tax havens are on their last feet. People may be ok storing their wealth there but wouldn’t want to live there. If you are in a EU country it is increasingly difficult to receive money on your account coming from a tax haven.
Sweden btw may have 0% IT but 25% VAT. Meaning that every schmuck contributes to government spending but those that got an inheritance are left alone.
What’sthe difference between a bonus forwhich people have worked ( let’s just assume that) and an inheritance?