Inheritance tax done right
A patent gives its owner the legal right to exclude others from exploiting an invention for a limited period of years, in exchange for publishing an enabling public disclosure of the invention. It is a contract between an inventor and society. The inventor tells society all about the invention. In exchange, society agrees to exclusive use of the patent by the inventor for a few years.
Inheritance tax does something similar for businesses created by individuals. After the founder has enjoyed the benefits of controlling a listed company in their lifetime, inheritance tax (as implemented in South Korea) ensures that a majority of the founder's shareholding enters the stock market. The wealth generated from the sale of this stock rests with the government.
If you only inherit less than half the shares owned by your parent, you can't end up with disasters like Anil Ambani (a child would rarely inherit a controlling stake). Even worse is the situation created by Mukesh Ambani, who is abusing the wealth he inherited into creating one monopoly after another.
Gift taxes are tightly coupled with inherited tax. Orange Trump wouldn't have received a seed capital of millions of dollars as gift from his dad, if his dad had to give an equal amount to the government.
Korea's Inheritance and tax rates slide up from 10% to 50%, depending on the value of the Inheritance/gift. Taxes done right, indeed. $11 billion of Samsung shares entered the market. And the South Korean government got richer by that much money. Win win.
https://m.timesofindia.com/business/international-business/samsungs-lee-leaves-behind-21-billion-wealth-for-inheritance/amp_articleshow/78856795.cms
A patent gives its owner the legal right to exclude others from exploiting an invention for a limited period of years, in exchange for publishing an enabling public disclosure of the invention. It is a contract between an inventor and society. The inventor tells society all about the invention. In exchange, society agrees to exclusive use of the patent by the inventor for a few years.
Inheritance tax does something similar for businesses created by individuals. After the founder has enjoyed the benefits of controlling a listed company in their lifetime, inheritance tax (as implemented in South Korea) ensures that a majority of the founder's shareholding enters the stock market. The wealth generated from the sale of this stock rests with the government.
If you only inherit less than half the shares owned by your parent, you can't end up with disasters like Anil Ambani (a child would rarely inherit a controlling stake). Even worse is the situation created by Mukesh Ambani, who is abusing the wealth he inherited into creating one monopoly after another.
Gift taxes are tightly coupled with inherited tax. Orange Trump wouldn't have received a seed capital of millions of dollars as gift from his dad, if his dad had to give an equal amount to the government.
Korea's Inheritance and tax rates slide up from 10% to 50%, depending on the value of the Inheritance/gift. Taxes done right, indeed. $11 billion of Samsung shares entered the market. And the South Korean government got richer by that much money. Win win.
https://m.timesofindia.com/business/international-business/samsungs-lee-leaves-behind-21-billion-wealth-for-inheritance/amp_articleshow/78856795.cms