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Originally Posted by SebC
Giving money to suppliers = supply side. Giving money to consumers = demand side.
So now you're arguing that government spending is good for the economy.
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Hardly, because that money still has to come from somewhere. What I was pointing out is that the savings from shrinking the military would take some time to be realized. It isn't as simple as issuing pink slips and quit buying bullets.
Quote:
Originally Posted by SebC
I could be mistaken, but once the money goes into a charitable foundation, isn't it permanently set aside for charity? I don't see why these should be considered the same as personal wealth.
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It's not the same as personal wealth but, it can provide cover from taxes and a source of personal income for yourself and following generations. Take Bill Gates for instance. He has given most of his wealth to the Gates Foundation which he governs. Yet most of that wealth still sits as shares in Microsoft. Any dividends goes to the charity. If he choses he can take a salary and expanses from the Foundation as its Director. He may chose not to if he has income coming in from other sources still. As director of the Foundation he is still seen as a major stock holder in Microsoft and exercises as much influence as he sees fit. He still in fact controls his fortune through the foundation. When he dies his children will take control of the foundation. They might already be on the board of directors. Their salaries and expenses will be covered by the Foundation at the rate they collectively determine.
Sure the foundation does provide for worthy causes just like individual Americans do. But they do more than just that. I wonder how much wealth one should be able to hide in a charitable foundation. As I said I don't think there should be inheritance taxes at all. We earn and save to give our children better lives. I just think that that money should have been taxed when it was earned rather than hidden in a charitable Foundation. Perhaps the answer is to limit the amount a charity can hold in investments like stocks. That would at least cause the money to be spent quickly instead of over generations.