Quote:
Originally Posted by Sliver
Can you expand on this one a bit? I get it in principle, but my wife and I are planning and working really hard to give our kids a leg up. Like, I could have a bigger/better house and newer cars if I wanted, but my financial goals are more directed at my kids. I want to help them buy their first houses, pay for their university educations, and just generally help them move forward in life moreso than making things materially better in my own.
I look at any wealth my wife and I accumulate as familial wealth, since you can't take it with you. I'm planning and hoping we can start some generational wealth in my family for my kids and their kids by making really long-term decisions now versus just decisions that affect me until I'm 85, say. I wouldn't want a system where I'm incentivized to buy a new car to just blow my money over saving, growing and transferring wealth from one generation to the next.
Like, I want to buy my kids and future grandkids more financial security. Some people rather travel and live in a huge house. I don't want to take a tax kick to the nuts because of how I'm choosing to spend my money.
Could be I just don't get what you mean, though.
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Everyone works to get a leg up. The issue is that the cost of living and capital is rising so dramatically, that the gap between those with a leg up and those without is becoming insurmountable. That gap gets harder and harder to close everyday. The difference in buying power between generations is immense, and the wealth of older generations will simply upset any changes we attempt to make. For example, if someone without the leg up does their best to put together a funds to make a purchase, someone with wealthy parents can just outbid that person. When the wealthy parents have access to multi-millions, it doesn't matter how hard the others are working.
If, for example, there's an estate tax of 20%, on dollars inherited about $1 million, I don't see how that would encourage people to blow all their funds before they die. It's still only 20%.