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If you exceed the inheritance tax exemption then you are taxed on the $10k so LTCG would be double taxing. You could argue that the inheritance tax should have

If you exceed the inheritance tax exemption then you are taxed on the $10k so LTCG would be double taxing. You could argue that the inheritance tax should have a much lower exemption but double taxation is harder to justify.

cool_dude85 2y ago
What is "double taxing" and why is it bad?
- vel0city 2y ago
  So much stuff has several layers of taxes on it but "double taxation" is really only used when discussing inheritance taxes. It's a term wealthy people made up to trick poor people into feeling sorry for ultra wealthy actually paying taxes on things.
  - JumpCrisscross 2y ago
    > "double taxation" is really only used when discussing inheritance taxes It’s a common concept, e.g. in the double taxation of corporate earnings and dividends.
    - vel0city 2y ago
      You're right, its pretty common for the wealthy to try and trick poor people into feeling sorry for the wealthy actually paying taxes on things. As my other post pointed out, tons of things have multiple layers of taxes. But the things people suddenly have some big moral issue with "double taxation" are things like estate taxes and corporate earnings and dividends and capital gains. Few people bat an eye at us double taxing the low income nicotine addict. Everyone seems to want me to shed tears for the billionaire having to pay "double taxation" on their third vacation mansion they're inheriting. Argue the rates are too low or too high for a given transaction. I can get behind that. But just crying because there's two different taxes being applied to a given transaction? Really?
      - JumpCrisscross 2y ago
        > people suddenly have some big moral issue with "double taxation" are things like estate taxes and corporate earnings and dividends and capital gains People get plenty mad about sales taxes double taxing taxed income, too. Nobody likes paying taxes. This isn’t a localised term.
        vel0city 2y ago
        > People get plenty mad about sales taxes double taxing taxed income, too. Yeah, and it's a dumb position to take. Like what, we can only apply one tax from one source to a given dollar bill's serial number after it leaves the fed, and after that point that dollar can never be taxed again? Otherwise, gasp, double taxation! The company shouldn't pay payroll taxes, they charged sales taxes to get that income to pay the salaries. I shouldn't pay any income taxes, the company paid payroll taxes on the money that had sales taxes on it. I shouldn't pay sales taxes, I paid income taxes on the money that had already had payroll taxes that had already had sales taxes that had... Suddenly nobody pays any taxes anywhere because somewhere up the chain someone else already paid taxes on that dollar!
    - chgs 2y ago
      But not when you pay income tax and then buy something and pay sales tax.
vel0city 2y ago
> double taxation is harder to justify Bullshit. "Double taxation" is such a weak argument to me. When I buy gas at the pump it's taxed multiple times. State sales tax. City sales tax. Federal gas taxes. State gas taxes. Quadruple tax on me there. My wage income has several taxes. FICA taxes. Payroll taxes. Federal income taxes. Potentially state income taxes. Potentially city income taxes. When I pay for a hotel there's often a bevy of different taxes on that. When I pay my phone bill there's a bunch of different taxes on that. Even getting a drink at a bar there's a sales tax and a liquor tax. And all of that is on money I've already paid all those several income taxes on, so it's really all just stacking there. Oh but boo hoo ultra wealthy get their massive inheritance "double taxed". Get bent crying over your "double taxed", I'm quadruple taxed and more all the damn time. Weak argument.
- commandlinefan 2y ago
  > Quadruple tax on me there. We have a problem with that, too.
  - vel0city 2y ago
    But like, why? It's a worthless point. If there were five taxes of one percent each versus one tax of 20% how is the one tax somehow better? Which one would you choose, getting taxed five times or once? It doesn't really matter that there's a FICA and an income tax and a payroll tax in the end, what really matters is the overall tax rate and if that's fair given some moral decision of fairness of sharing costs of society. If a city chooses to levy sales taxes and hotel taxes to capture more revenue from visitors because their town is a tourist destination and want to collect from tourists more than locals that's fine. I won't weep a tear for those getting "double taxed" on their vacations.
    - oceanplexian 2y ago
      Payroll tax is a problem because it’s not accounted for in your overall tax rate, it’s accounted for via lower wages. So you have no idea what your actual income would be if not for all the taxes your employer is paying.

cool_dude85 2y ago

What is "double taxing" and why is it bad?

vel0city 2y ago
So much stuff has several layers of taxes on it but "double taxation" is really only used when discussing inheritance taxes. It's a term wealthy people made up to trick poor people into feeling sorry for ultra wealthy actually paying taxes on things.
- JumpCrisscross 2y ago
  > "double taxation" is really only used when discussing inheritance taxes It’s a common concept, e.g. in the double taxation of corporate earnings and dividends.
  - vel0city 2y ago
    You're right, its pretty common for the wealthy to try and trick poor people into feeling sorry for the wealthy actually paying taxes on things. As my other post pointed out, tons of things have multiple layers of taxes. But the things people suddenly have some big moral issue with "double taxation" are things like estate taxes and corporate earnings and dividends and capital gains. Few people bat an eye at us double taxing the low income nicotine addict. Everyone seems to want me to shed tears for the billionaire having to pay "double taxation" on their third vacation mansion they're inheriting. Argue the rates are too low or too high for a given transaction. I can get behind that. But just crying because there's two different taxes being applied to a given transaction? Really?
    - JumpCrisscross 2y ago
      > people suddenly have some big moral issue with "double taxation" are things like estate taxes and corporate earnings and dividends and capital gains People get plenty mad about sales taxes double taxing taxed income, too. Nobody likes paying taxes. This isn’t a localised term.
      - vel0city 2y ago
        > People get plenty mad about sales taxes double taxing taxed income, too. Yeah, and it's a dumb position to take. Like what, we can only apply one tax from one source to a given dollar bill's serial number after it leaves the fed, and after that point that dollar can never be taxed again? Otherwise, gasp, double taxation! The company shouldn't pay payroll taxes, they charged sales taxes to get that income to pay the salaries. I shouldn't pay any income taxes, the company paid payroll taxes on the money that had sales taxes on it. I shouldn't pay sales taxes, I paid income taxes on the money that had already had payroll taxes that had already had sales taxes that had... Suddenly nobody pays any taxes anywhere because somewhere up the chain someone else already paid taxes on that dollar!
  - chgs 2y ago
    But not when you pay income tax and then buy something and pay sales tax.

vel0city 2y ago

> double taxation is harder to justify Bullshit. "Double taxation" is such a weak argument to me. When I buy gas at the pump it's taxed multiple times. State sales tax. City sales tax. Federal gas taxes. State gas taxes. Quadruple tax on me there. My wage income has several taxes. FICA taxes. Payroll taxes. Federal income taxes. Potentially state income taxes. Potentially city income taxes. When I pay for a hotel there's often a bevy of different taxes on that. When I pay my phone bill there's a bunch of different taxes on that. Even getting a drink at a bar there's a sales tax and a liquor tax. And all of that is on money I've already paid all those several income taxes on, so it's really all just stacking there. Oh but boo hoo ultra wealthy get their massive inheritance "double taxed". Get bent crying over your "double taxed", I'm quadruple taxed and more all the damn time. Weak argument.

commandlinefan 2y ago
> Quadruple tax on me there. We have a problem with that, too.
- vel0city 2y ago
  But like, why? It's a worthless point. If there were five taxes of one percent each versus one tax of 20% how is the one tax somehow better? Which one would you choose, getting taxed five times or once? It doesn't really matter that there's a FICA and an income tax and a payroll tax in the end, what really matters is the overall tax rate and if that's fair given some moral decision of fairness of sharing costs of society. If a city chooses to levy sales taxes and hotel taxes to capture more revenue from visitors because their town is a tourist destination and want to collect from tourists more than locals that's fine. I won't weep a tear for those getting "double taxed" on their vacations.
  - oceanplexian 2y ago
    Payroll tax is a problem because it’s not accounted for in your overall tax rate, it’s accounted for via lower wages. So you have no idea what your actual income would be if not for all the taxes your employer is paying.