Ghost of Truth on Nostr: The Hidden Cost of Legacy: How Inheritance Tax Threatens Family Businesses ...
The Hidden Cost of Legacy: How Inheritance Tax Threatens Family Businesses
Inheritance tax is more than just a fiscal burden; it's a destructive form of taxation that strikes at the core of individual property rights. By taxing the sustance of private capital formation and unrealized gains, this policy represents a severe intrusion into personal wealth, driven by a socialist agenda that’s spiraling out of control as the growing welfare state with its crazy bureaucracy shows quite impressively. As the state hunts for new funding sources at the expense of its citizens, the inheritance tax emerges as a prime example of how far this approach can go.
If the state now intervenes heavily in the transfer of companies to the next generation, it will in many cases force companies to be sold and wound up. But this does not bother the socialists in the capitals of the West. They live in their bubbles of opinion and ideology, which shield them from these problems.
This tax doesn’t just affect the wealthy—it threatens the very survival of family-owned businesses. A recent analysis from the Mannheim-based ZEW economic research institute highlights Germany's extreme stance compared to other nations. The report, commissioned by the German Foundation for Family Businesses, reveals that Germany imposes some of the heaviest taxes on inherited business assets, especially when compared to 33 other countries, including the U.S., Japan, and most of Europe.
What’s striking is the contrast: while 26 of the countries in the study impose little to no inheritance tax, Germany charges some of the highest rates. This is particularly problematic for family businesses, where most wealth is tied up in the company, making it difficult to meet these tax obligations without significant disruption.
Even with certain tax reliefs available, Germany’s position remains among the most taxing. This isn’t just about fiscal policy; it’s about the survival of businesses that have been the backbone of the economy for generations.
https://ftp.zew.de/pub/zew-docs/gutachten/ErbSt_Kurz.pdf
#InheritanceTax #FamilyBusiness #Germany #EconomicPolicy #WealthPreservation
Inheritance tax is more than just a fiscal burden; it's a destructive form of taxation that strikes at the core of individual property rights. By taxing the sustance of private capital formation and unrealized gains, this policy represents a severe intrusion into personal wealth, driven by a socialist agenda that’s spiraling out of control as the growing welfare state with its crazy bureaucracy shows quite impressively. As the state hunts for new funding sources at the expense of its citizens, the inheritance tax emerges as a prime example of how far this approach can go.
If the state now intervenes heavily in the transfer of companies to the next generation, it will in many cases force companies to be sold and wound up. But this does not bother the socialists in the capitals of the West. They live in their bubbles of opinion and ideology, which shield them from these problems.
This tax doesn’t just affect the wealthy—it threatens the very survival of family-owned businesses. A recent analysis from the Mannheim-based ZEW economic research institute highlights Germany's extreme stance compared to other nations. The report, commissioned by the German Foundation for Family Businesses, reveals that Germany imposes some of the heaviest taxes on inherited business assets, especially when compared to 33 other countries, including the U.S., Japan, and most of Europe.
What’s striking is the contrast: while 26 of the countries in the study impose little to no inheritance tax, Germany charges some of the highest rates. This is particularly problematic for family businesses, where most wealth is tied up in the company, making it difficult to meet these tax obligations without significant disruption.
Even with certain tax reliefs available, Germany’s position remains among the most taxing. This isn’t just about fiscal policy; it’s about the survival of businesses that have been the backbone of the economy for generations.
https://ftp.zew.de/pub/zew-docs/gutachten/ErbSt_Kurz.pdf
#InheritanceTax #FamilyBusiness #Germany #EconomicPolicy #WealthPreservation