Wealth distribution. Wealth tax and estate planning Essay

Wealth distribution. Wealth tax and estate planning - Essay Example Riches are accumulated at a rate faster than the affluent can normally spend yet it is being held and proportioned among themselves while the gap between wealthy and the needy visibly widens.In a study of disposable weekly income by the ONS, the richest 10% of have at least 658 per week (after deductions), compared with the poorest 10%. T Twenty-three percent of the nation's total riches is owned the by richest 1% group. Intangible wealth is left to the hands of its owner to amass and enjoy during his lifetime free from any liens and encumbrance. With the current budget crisis, tax imposition and structure on intangible wealth would surely correct the scenario and for the country to appropriately create solutions that is beneficial to each citizen. Instead of finding ways and means to increase the tax percentage remittances of the working class, channeling the deficit to the excess of the affluent could entirely minimize the growing responsibility of its weary ordinary taxpayers.Weal th according to Frank "is an abundance of items of economic value or the possession of such items" which could either be money, personal property or real property. Other countries would identify wealth as the possession of crops and livestock. Historical data would portray wealth as an accumulation of non-necessities. In the Middle East, wealth denotes ownership of arable lands. Smith saw wealth as "the combination of materials, labour, land and technology in such ways as to capture profit. Across the ages from tribal society to modern age several means to moderate wealth distribution and its acquisition and use was relatively studied. Some tribes along the Pacific Rim kept wealth evenly distributed by means f giveaways to the poorer members of the society. The tradition of philanthropy exists in modern civilized society. Such traditions according to Cook "are recognized as responsible wealth". Government policies can gear towards the redistribution of wealth to the rich and poor respectively. In disaster relief operations, wealth is transferred to those who are victims of natural disasters and calamities. Social security benefits transfers wealth earned to the older individuals. Wars transfers wealth to other sectors of the society and in reparations wealth is transferred to other countries. Public education allows the wealthy to send children of needy families to school. Certain government campaigns support the hungry in third world countries. Yet, people from the upper social strata despise having to contribute to these programs and continue to evade them. The act of wealth distribution itself cannot achieve 100% efficiency due to the maintenance of structures to collect and redistribute it. Arguments as to its accumulation and redistribution often create conflicts within the system. However if a certain society implements wealth distribution by means of persuasion valued on the different capital and the production of wealth, the rich once in a while can be mandated to give away at least a small part of their extra assets to the poor. In turn, according to the Keynesian theory, this redistribution and expenditures have a multiplier effect that stimulates the economy and creates wealth again back to the wealthy capitalists. In France, residents declare their annual worldwide assets and their value for which assets exceeding 732,000 a graduated tax is payable annually. Married couples and minor children file one common return. Non-residents who own assets or bank deposits including shares of stock in France or French companies are also liable under the wealth tax law. As a significant source of revenue this law was implemented in 1989 and declared taxable assets which include: real estate; furniture; jewelry; cars and other vehicles; horses; shares and bonds; endowments and redeemable value of life insurance. Assets that are held in trust for beneficiaries under the French law are not recognized. French authorities regard a trust as