Submitted by dissolutewastrel t3_11m94wq in Pennsylvania
psychcaptain t1_jbh6x2r wrote
Reply to comment by HomicidalHushPuppy in Pennsylvania has No. 4 highest tax rates in U.S.: report by dissolutewastrel
If you are under 21, you don't pay a dime, so I am not seeing a problem. And if you are over 21, you should have a job, instead of expecting handouts from dead relatives.
Aisling207 t1_jbh8vjq wrote
The money has already been taxed. If the Feds don’t tax it, why should PA? Plus it unfairly punishes unmarried couples and found family.
psychcaptain t1_jbh9mhe wrote
Unmarried couples is a pretty easy problem to solve.
If they are unmarried for tax reasons than this is the risk they take.
As for the Fed, there is a lot they don't tax and a lot they do tax that is different from the state.
The Fed doesn't tax 401(k), but the State does. The State doesn't taxes 529, but the Fed does. It's not a serious argument.
Found families aren't taxed any different from regular families with kids over 21 so I don't think that works either.
Aisling207 t1_jbhatl3 wrote
Oh, boy.
I never said “unmarried for tax reasons,” I pointed out that many widows/widowers will lose all of their pension and social security benefits if they remarry. That’s not about taxes, it’s about survival.
The Fed absolutely does tax 401(k) benefits.
Found families are taxed at 15% by PA. Lineal descendants are taxed at 4.5%, siblings at 12%. So yes, they are absolutely treated differently.
psychcaptain t1_jbhb2ac wrote
401(k) are exempt from Income Taxes.
Roth is not.
And if a person benefits financial from not being married, I don't see why it should be up to us to give them more.
Aisling207 t1_jbhbuzn wrote
You have that completely backwards. A Roth IRA has already had federal taxes withheld and withdrawals are not taxed. 401(k)s contributions and gains are not taxed by the Feds until withdrawal.
And no one is “giving” anyone “more” by abolishing inheritance tax.
psychcaptain t1_jbhdj0l wrote
Ironically, I've worked in the retirement industry for over half a decade, and I do know the rules for 401(k) and Roth pretty well. I was talking about taxes per payroll.
Since we are talking about being dead, you aren't actually taxes on your 401(k). It can be passed on to your children and or spouse.
As for inheritance Taxes, I love it. It solves 3 distinct problems and no one suffers.
1). In a capitalist system, money should be earned. People should work for it. Competition should bring out the best. Generational Wealth distorts the system. It creates dynasties of people earning wealth on their wealth based on little or no input of the one holding it. It creates lazy lay abouts landless aristocracies and new version of feudalism. It breaks the system down.
2). The funding can be used for things that people care about, rather than statues, university wings of colleges you family will never attend, KKK groups or Libraries.
3). It helps people realize that they should spend their hard earned money and enjoy life. Accumulating wealth should not be something people do as an end goal Eye of a needle vs camels.
Now, I am happy to make exceptions for spouses and minor children, but outside of that, well, I hate the idea of creating more loop holes where none are necessary.
Aisling207 t1_jbhft7l wrote
My point was that even the Fed recognizes that taxing all estates/inheritances regardless of size is unfair. You are arguing for a regressive tax. A widow/er who would lose their income or right to be buried with a previous spouse by remarrying should not be forced to sell their house to pay the state if their partner dies. A person without children should not be penalized for wanting to provide for the time and expenses of an unrelated caregiver.
psychcaptain t1_jbhg399 wrote
A widow only loses the benefits if they get married before age 60.
Do you know a lot of 50 year Widows living off their dead spouses Social Security Benefits?
We aren't talking about 75 year Meredith, we are talking about 50 year Sandra's, who should get a job.
And if they are disabled at 50, and getting DIB, they also keep their Spouses benefits.
Aisling207 t1_jbhi6f2 wrote
Look, it’s really not your business to tell anyone to get a job. But realistically, yes, we ARE talking about 75 year old Meredith, who relies on a pension and cannot remarry, but who met a nice person she’d like to be with, but would lose that pension and the ability to be buried with her first spouse if she remarried. She and her partner own a house together. Or maybe she and her sister own the house. If that person dies, she owes PA a big check, which forces her to sell. Plus she has to turn over part of her bank accounts.
We really aren’t talking about Real Housewives of Altoona or Paris Hilton or whatever.
HomicidalHushPuppy t1_jbh7jjk wrote
But think about what you could do with extra money - reinvest it, build a business, start a charity, etc. Instead it just disappears into the state's coffers. If it's ever seen again, it'll be in the form of a public service where the benefit to everyone is financially negligible.
psychcaptain t1_jbh82j0 wrote
You mean pay for roads, police, hospitals and schools because Rich people do Fuck all with their money, except make sure their descendants stay wealthy, and give large endowments to build statues to their honor.
I have no interest in support somebody's Egyptian Pharaoh Cosplay, when the money could be better used in the Commonwealth.
If you don't like how the money is being used in the Commonwealth, do something about. Run for office and make a difference.
HomicidalHushPuppy t1_jbh99w1 wrote
This isn't strictly about wealthy people. There are enough average people who would benefit from generational wealth than there are wealthy people who don't need it passed down.
psychcaptain t1_jbh9yqc wrote
Sorry, as a strong believer in Capitalism, and Earned Wealth, the idea of Generational wealth is horrifying.
You earn your own money, not get it past down to you. That shit is for pansy ass white lily aristocrat wannabes. This is the United States of America. You pull yourself up by the bootstraps, you work hard, and you get things done.
69FunnyNumberGuy420 t1_jbkel6d wrote
> Instead it just disappears into the state's coffers.
Ah, cool to see that you've bought into seventy years of propaganda being pushed by very rich people, your betters, who use their intergenerational wealth to help keep you in your place.
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