Big Ben - 6/30/2020 10:37
w1891 - 6/30/2020 08:16
And that time value should reset with each person. When transferred without regards to valuation the next generation is given that time value with no regards to their own production. So the time value compounds much more quickly each successive generation. That puts much less value on current labor than prior labor. It also exacerbates the inflation in the economy.
The time value does reset with each person...that’s essentially what the step up in basis does.
The rest of your post makes no sense at all. If compounding of generational wealth is even something that happens, it’s more than offset by the frequency of subsequent generations being larger than previous ones. Grandpa may have been rather wealthy, but by the time that wealth is divided by four kids and 12 grandkids, nobody is that wealthy anymore. Individuals must contribute their own effort to maintain and build wealth or else fortunes are eventually whittled away.
You seem to think that every generation should be forced to buy everything themselves regardless of the savings of their forefathers, a policy which would be absolutely disastrous for the economy. Capital is the backbone of any economy, and de-incentivizing capital accumulation is second only to outright confiscation of assets in its effectiveness of killing productivity.
I guess stepped up basis is considered a loophole
