While our corporate tax is higher than the USA, the USA has 40% death taxes (inheritance tax) while we have none. Japan has 50% & Korea has 45%.....all good first world capitalist countries
The question is: should we also have a death tax or should we expect our billionaires to donate say 25% of their accumulated wealth to the State to finance a tax cut for those on minimum wages.
We are told from last weeks "Fair Wage" deal that 2.2 million working Aussies are on a minimum wage (say $40K P/A) and at the current rate of personal income tax that yields about $8.6 billion a year for the ATO or $3600 per individual.
There are approx 170K deaths a year in Aus of which say 100K of these deaths where assets are inherited at say an average wealth of $500K 40% death duties would yield at least (100K x $500K) or $50 Billion/year
Not alone would this be enough to exempt those on on minimum wage from PAYE + Medicare levy + Super contribution, it could also lift the aged pension to minimum wage and improve children welfare payments.
The argument for such a scheme is that it would reduce the wealth gap, put an emphasis on the worth and dignity of work (not wealthy that one hasn't earned and a fairer starting point for children.
A death tax is not taxing the person who earned it but instead taxes the inheritor who did not earn it.
The option is to ask our 105 Billionaires to donate 25% of their wealth to the State. Lets face it, if their estate were to attract a death tax of say 40% like the USA (worse in Japan of 55%) with these billionaires having a combined wealth of $500 billion. Quarter of that would be $125 Billion or enough to finance the 2.2 million minimum wage earners tax cuts in perpetuity if invested via the Future fund
30 June 2020 the Future Fund delivered a 10-year return of 9.2%.(source: future fund.gov.au)
Given that either proposition would not personally cost posters while alive (I assume none are Billionaires) and I assume that none are on minimum wage then there ought to be no direct hip pocket objections, IMO.
