The Productivity Commission’s startling finding is that passing on wealth actually cuts inequality.
They not only direct tax-free income to children, but also to children who are yet to be born.
Tasmania gets more of its revenue from “bad taxes” than any state or territory other than Victoria, and less from “good taxes” than anywhere other than Queensland.
Not only do we not tax inheritances, we actually subsidise them, making the already well off even better off.
The media loves a victim, but sympathy for someone who won’t spend what they’ve got because they’re saving for their children is taking it too far.
Demographics are making elections about tax concessions, and soon there will be no turning back.
Four fifths of the coming bonanza of bequests are set to go to the top one fifth of recipients.