Brilliant article. Can clearly see why some young people still vote ffg. Their failures aren't as apparent when mammy and daddy sort out all of your financial issues, including housing...
Scenario 2 being one silimg buying the other out? With what?
You'll need to tell us your position on the 100% dwelling exemption for children inheriting the house they are living in
Or even on the 335k threshold?
I'm asking you.
You're going on about this 75k as if it actually affects anything other than reducing your windfall. You haven't explained why you think that
How are these people accumulating wealth and others are not?
Revenue stats
There is a breakdown of CAT receipts:
Source on those figures? I cant find anywhere that says our GINI coefficient is 0.8
Official source of income inequality data here:
Wealth data here:
https://www.cso.ie/en/releasesandpublications/ep/p-hfcs/householdfinanceandconsumptionsurvey2020/incomeandwealthinequality/
thanks - interesting that cat B ('to a relative that is not a child') forms approximately half of the inheritance tax take.
I don't pay corporate taxes, corporations do. Moot point.
Gini co-efficient for disposable income
Income inequality has been falling
2020 = 0.285
2021 = 0.270
People pay all taxes.
When Vodafone pay CT, then some or all of the following pay the CT:
Vodafone staff
Vodafone customers
Vodafone shareholders
Corporations can and should be regulated by the state. There are laws around anti-trust and monopolies that should be enforced to prevent the kind of East India Trading company style corporate hegemony
But that doesn't mean we should allow dynasties to grow where families can accumulate huge wealth over generations.
The existence of these dynasties and of the super rich has direct consequences for ordinary people.
If you feel like you're paying too much rent, or can't afford a home. It's because some extremely wealthy people own all the land are sitting on assets that would otherwise be available to ease the housing crisis. (not just Irish people either)
https://www.independent.ie/business/personal-finance/property-mortgages/cuckoo-funds-spent-more-than-6bnbuying-up-irish-properties-since-2018-40623333.html
https://www.irishexaminer.com/property/residential/arid-40775952.html
Gini co-efficient for wealth 2020
The Gini coefficient is a statistical measure of inequality. A Gini coefficient value of zero denotes perfect equality, indicating that wealth is distributed equally amongst all households. A Gini Coefficient of 1 would denote perfect inequality where all the wealth is held by one household. The Gini coefficient for net wealth in 2020 is 0.65.
When interpreting this figure, it is important to note that the HFCS does not capture a significant portion of household wealth in the upper percentiles (i.e. the top 1% to 2%). For example, no billionaires or households with a net wealth greater than 40 million euro were interviewed for the HFCS in 2020. We can assume that this results in an underestimation of the Gini coefficient for net household wealth.
I'm not with Vodafone for any of their services. I've a choice whether or not to be a subscriber. Again moot point.
I've no choice about dying, it will happen some day and when I do this greedy government wants 33% in value of everything I leave to my kids - of which I've already paid ~49% taxes on.
Yes the state is far more deserving of gifts, love , loyalty and affection from a parent than their own kids
I mean some people believe our kids are an extension of us but they must absolutely come second to the state in terms of deserving
the best way to increase the roll ( and power ) of the state is to weaken family power and financial independence
I am no fan of CAT, but nobody pays 33% of "everything I leave to my kids".
If your estate is 1m split between three adult children, their CAT bill will be zero.
Fair enough, if you have an only child, receiving your 1m estate, then they will face a large CAT bill.
If you have a 49% direct income tax rate, then you are earning over 1m per year.
No they want 33% above a certain value not of everything.
Houses & land owned by cuckoo funds are corporate owned - not owned by individuals.
Even though many of these funds and investment vehicles may be controlled solely by an individual, its still a corporate entity. The entire reason they can do these things is that they take advantage of the fact corporations are not subject to things like inheritance taxes.
Timmy, it is entirely within your remit to set up a corporation and to transfer your assets into it should you wish to do so.
Why would you probably not do so in order to avoid inheritance tax? Well the reason is that although the corporation would not be liable for tax, anyone whom you left the company to would be on their inheriting of the company. They can of course avail of business relief if you have set things up properly, but you don't need a corporation to avail of that so that is a completely different point.
They're buying assets
The ownership of assets allows them to accumulate wealth.
People who do not own assets, pay their income to the asset owning wealthy, for the use of those assets. Rent being the most obvious one
While working people pay income tax on our earnings, assets attract almost no tax until they are 'cashed in' But the truly wealthy never cash in their assets. They just accumulate them, and if they need liquidity (to buy more assets) they can borrow money (at much lower interest than the average worker) and repay those loans with the income they receive from the ownership of their other assets, and the interest is counted as an expense, and written off against any tax liability they might have
Because the windfall is not cash and can not be turned into cash - I've answered this several times.
The 75k is a bill that can't just be ignored.
No. You haven't answered anything. You were asked what you would do under two scenarios
1) 75k tax
2) 0 tax
You are inheriting a 1.1m house with your sibling. Are you planning on
A) Both moving in to live in the house jointly
B) Sell the house
C) Rent it out
D) One waive their inheritance and gift it to the sibling so that they can live in in alone
E) One buy the other out
F) Board it up and leave it to rot with nobody living in it
G) ??? Whatever else. Maybe a messy structure where one moves in and pays the other half the market rent indefinitely?
You are implying that the option available to you changes if you have to pay tax. I am simply asking you what the two options are.
Don't Sinn Fein want to increase the rate from 33% to 36%?
Careful with your tax advice there, €335k is the limit from both parents combined, not individually. So you cannot receive €670k free of tax from parents.
Income inequality has been falling, but wealth inequality has been growing
This is because of 2 things
But you could double the income of the lowest paid and they still won't be in a position to afford to buy the kinds of assets that make the wealthy wealthy
People who don't own any assets, some of them may have cash savings or own some shares or have a pension, but most people have net negative wealth. Their debt is higher than the value of all of the assets they own.
The poorest 10% of households have wealth less than €1000, and in many cases, below €0
In the past 10 years, the poorest 10% of households have gone from mostly being home owners, to overwhelmingly being non homeowners
This is because most people's wealth are in their property. And when the property was in negative equity, there were many 'Homeowners' who had negative assets. but in the 5 years between 2013 and 2018, that trend reversed as property prices surged again so the ownership of an asset automatically brought people out of wealth poverty and consequently made those who don't own any property poorer as rent increased.
https://www.cso.ie/en/releasesandpublications/ep/p-hfcs/householdfinanceandconsumptionsurvey2018/wealth/
€542,544 from parents was the inheritance/gift tax threshold in early 2009 (highest ever threshold). It really should be readjusted based on increasing asset values, as happened annually from 1989 to 2009.
It then started reducing until December 2011.
yippee, lets continue to blame younger generations for these issues, as its a great way to take the focus off us older generations for the accumulation of the ownership of assets, and the encouragement and support of public polices in maintaining these outcomes, go us asset owners, and fcuk those none asset owners!
You didn't pay 49% taxes on your income
But even if you did, your wealth that you leave behind was mostly untaxed
If you buy a house in 2000 for 100k, and you die in 2030 and that house is now worth 500k, that's 400k of wealth that you paid no tax on, and if you leave that to your kids, they'll pay no tax on it either but still own an asset that continues to increase in value, and in fact can earn them an income if they choose to rent it out
yea cant bait the good ould rentier economy!
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