They get to fight the wars that help protect your wealth.

100 million Chinese are in the middle class. Relatively small compared to its entire population? Yes.

But by 2030 these numbers will explode to about 1/3 of its working population. China only had about what, 20-30 years of economic participation in the global economy?

I used to think 1st world nations were exploiting China, not anymore.

Uh, they get paid sub living wages without benefits or even time off or regular schedules thanks to the inherent race to the bottom in the unskilled labor market.

Stop buying stuff at Walmart then.

You can give the money to your heirs. Nobody is stopping you, and YOU don't get taxed. Your heirs do.

Just like if you used the money to pay someone to do work for you, that person would get taxed.

Of course, in one situation, someone is doing actual work. And in the other, no work is being done. But you want the work scenario to be taxed and the no work scenario to be tax free because...?

It's not just Walmart. I would have to go fully off the grid and out of the market to avoid exploited workers.

Even then unless you make all your own tools and clothes...

huh? so when you buy things you dont have to pay taxes on them? congrats I guess. I think you are drastically overestimating the amount of places where that is the case.

Food (non prepared) and clothing is exempt from taxation here in this state. Don't worry we more than make up for it in property taxes and other fees.

This all started when one poster made a comment that all monies after death should go to the state.

Actually, the liability for the gift tax is on the donor!

Doesn't that depend on how much it is? Can't each parent give 12.5k without a tax on either person (the giver or receiver)? If done right within the span of a couple of weeks you can give them 50k tax free if done around the end of the year.

It's a nice flip that goes on there. Of course the children don't "deserve" the money in the capitalist sense of just deserts. They didn't do anything to get it, no goods or services were exchanged. But since the just deserts justification aspect of capitalism can't apply we have to shift the focus to volunteerism. The money is the person's to bestow however they want, regardless of whoever is getting it "deserves" it and all those bad effects of giving money to people who don't deserve it ie. it makes them lazy etc, is conveniently ignored. That won't be the case when it comes to money to the poor in which case those effects would play a prominent role.

There is a ~$5.5 million lifetime "limit" on gifts without a tax penalty. A certain dollar amount per year can be given and not go against the lifetime limit. I think that annual limit is $14k?

No tax is charged until the lifetime limit is reached, and for most people, gift taxes are never going to be a concern.

So if your rich uncle gives you $14k per year from birth to age 29, on your 30th birthday he could give you $5.5 million and it still wouldn't trigger a tax liability, even though he had given you nearly $6M lifetime.

That's an individual limit, by the way. So if your benefactor is married, your rich uncle and his wife could give you $5.5M and $5.5M "separately" and still not worry about a tax burden.

Depending on your state you may owe more in gift/estate tax as well.

I am SHOCKED that this turns out to be the case

Tax law is ****ed. I decided to self-study for the CPA, and said, "**** this" right around the Trusts/Estates section of the first 700 page book I tried to read.

I have since decided that I'm comfortable with my current industry-specific knowledge of taxation and accounting, and will leave the CPA certifications to the turbo nerds.

lol gtfo

The economy of China requires far more nuance to assess and analyze than what you provide. You can't go high GDP therefore awesome and remain intellectually honest.

You have parts of China that are third world (subsistence farming and factory work), second world (heavy industry and urbanization) and first world (green power and service-based economy) all mixed into one country. Wealth is highly concentrated in large cities on the coastline while inland rural areas are disregarded by the government.

China has no upward mobility for the lower-class. If you're born to subsistence farmers, your future has been predetermined. You don't have the network to get favors to work your way up and you don't have the money to study overseas and get work there.

Nobody will say that live under Mao was better than life now. But to say that China is a country with thriving middle-class is laughable.

China's economy is certainly not as rosy as Tien stated and there is a plethora of problems.

However, using these problems as an indictment of capitalism as stinkubus has done is equally one sided.


The same problems existed prior to China's move to a market economy except at that point these problems affected 100% of the population.

With regards to exploitation of labor. Every poster here and arguably 95% of the world exploits labor.

But you're dead. Does it practically matter which return the liability is captured on? Aren't you effectively taxing the heirs in either case?

I personally wouldnt mind a system where income tax was lowered across the board but estate tax and gift tax for anything over say 500,000 be taxed 90% +.

China is doing fine. No need for 1st world nations to cry on their behalf. Let China open its own massive wealth vault for its own people. We don't morally owe them anything.

You just haven't spent more than 15 seconds thinking about the countless ways such a system could be exploited.

I am sure there are enforcement issues. My focus is not on the numbers or the details but rather the macro view that on an individual level, labor based income should be taxed less than inherited income if you seek to promote generational economic mobility.

"It's totally has nothing to do with me buying stuff from Chinese sweatshops. It's their responsibility."

lol tien