$90,000,000,000,000 Transfer of Wealth To Gen Z and Millennials Is ‘Tempting Target’ for Governments Amid Soaring Debt: Report

A multi-trillion dollar transfer of wealth from baby boomers to their brethren has become a “tempting target” for taxation, according to a new report.

The transfer, which is estimated to reach $90 trillion in the US alone, has sparked a new and urgent political debate on inheritance taxes, reports the Financial Times.

“With even the youngest boomers turning 60 this year, the wealth transfer is already under way — leaving policymakers facing increasingly urgent questions about whether and how to influence the outcome. Their responses could shape tax policy for many years.”

In a recent report, the Organisation for Economic Co-operation and Development (OECD) said redesigned taxes on inheritance could help governments redistribute wealth, simultaneously boosting equality and federal revenue.

Pascal Saint-Amans, former director of the Centre for Tax Policy and Administration at the OECD, says inheritance taxes are a less “constrained” option than wealth taxes – for example, assets of the deceased could be liquidated to pay the bill.

But inheritance taxes are not popular and their potential impact on the economy and society at large is debatable, says Aswath Damodaran, a professor of finance at New York University.

“An inheritance tax doesn’t fix the core problem: an economy that’s in decline and an ageing population… You’re taxing income that’s already been taxed, so fundamentally it’s being double-taxed.

You’ve got to be OK with nobody saving and the government acting as the pension fund or wealth creator of last resort. My concern is the message that would send to the next generation is abysmal, in that they do not need to take personal responsibility.”

In the US, inheritances are currently taxed if they surpass $13.61 million.

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

The post $90,000,000,000,000 Transfer of Wealth To Gen Z and Millennials Is ‘Tempting Target’ for Governments Amid Soaring Debt: Report appeared first on The Daily Hodl.