I have been saying for ages that intergenerational inequality is likely the biggest issue, outside of climate change, of the next half century.
This is a good reminder.
(The other thing we need to do is a Sovereign Wealth Fund to preserve value for future generations)
#auspol
This is a good reminder.
(The other thing we need to do is a Sovereign Wealth Fund to preserve value for future generations)
#auspol
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Comments
It's a single purpose fund (actually a few, stuck together).
But a proper SWF would be funded on an ongoing basis and have a broad national mandate.
No-one has a tax strategy based on living longer or shorter. Many unintended consequences, especially if it comes unexpectedly early.
It’s easy when assets are liquid and have no emotional value, but that often is not the case.
If the inheritance is a home and/or farm, for example, I'm not sure it should be forcibly liquidated to meet a CGT obligation?
I'm just saying it's not as cut and dried and there are decent arguments to consider
Forced liquidation of assets could be avoided with careful legislation.
It depends on the asset, though.
Consider a private company, solely owned by a founder.
Would that have to be sold to meet a tax obligation?
There is an inkling of a justification in that invested money has already been taxed.
But more important, IMO, is that those who have been able to derive an income from asset gains should contribute more to the national project.
I'd still tax it equally - but it's not an open and shut case, IMO.
Which, again, is why I'd return CGT to indexation :)
We also need to think about an inheritance tax.