

You don’t pay VAT/GST on the money, you pay it on the product’s price (and you can avoid it if the receiptent agrees to get paid in cash and don’t show it in the books). For assets, you are buying it with your money that you have already earnd that has been already taxed. You also have to pay a stamp duty to the government when you buy any asset, you pay registration fees, you pay all the property & Municipal taxes and when you sell it, you will be paying a capital gains tax anyways, so what’s the point of charging an inheritance tax?
Simple question to you: My networth is just 100k USD, I inherited 500k USD (current market value) house from my parents, and the inheritance tax is at 20%, wouldn’t I lose all my existing money and assets I for something that is just worth 500k USD as an unliquid asset? To sell that house you will have to find a buyer which is not an easy or cost-free task. If the house doesn’t sell, you will be paying property taxes anyways, and once you sell it, you will pay the capital gains tax as well so what’s the point of inheritance tax?
What I think is a better solution: Define a certain threshold where the value of inheritance is above a level where the person inheriting becomes wealthy beyond their and their family’s actual needs, and distribute that wealth among the lower income people in the form of permanent housing.


That is exactly what I said. Couldn’t put it in better words. Exemptions. Only difference I said is exempt the amount upto, let’s say, what a family of 3 people needs for let’s say 3 years. That way the inheriter won’t have to pay a superficial tax while still maintaining a livable lifestyle. Charging inheritance tax on poor people (however little) puts a lot of burden on them for something they are not willingly earning or purchasing. Charging millionaires and billionaires with inheritance tax is better as there will be a continuous cycle of wealth redistribution and thus they won’t be able abuse their powers. But wealth tax is more efficient that way as it would prevent someone becoming obscenely wealthy in the first place.
Taxing the poor has never worked, they will hoard more unaccounted whatever wealth they have to avoid those taxes rather than owning real estate, shared, bonds, etc and participating in the economy. No one likes paying taxes — especially on something which they are not willingly earning or purchasing.
Also you pay VAT and GST only once — so it is not an example of double taxation. These have been designed in such a way that the only the final customer pays tax on it as the final entity in the supply chain. Whatever VAT/GST the retailer, supplier and the service provider paid is refunded by the government in the form of ITC (Input Tax Credit).