During 2010, two of the richest people in the world (Warren Buffett and Bill Gat

Question

During 2010, two of the richest people in the world (Warren Buffett and Bill Gates) initiated a movement in which billionaires would commit to giving at least one-half of their wealth to charity or to serve the public good. Is this a good idea or is it merely a way to avoid to keep the government from taking their wealth in taxes? Should this idea be extended to include people of lesser wealth?

Should the estate tax be abolished forever, permitting families of successful, wealthy individuals to retain their wealth without government interference? Why or why not?

Explanation / Answer

Personally I feel this is a good idea of giving more than half of their wealth to charity or to a serve the public good. There are numerous tax exemption loop holes in every country's taxation policies and these billionaires can hire an expert to save tax on their wealth. First of all they don't need to save anything on tax because they are already making a lot of money.

The best way to handle these kind of situations which many counties have adopted is to not waive off the entire tax, however waive off the tax on the amount donated to charitable trusts and other public goods.

The Govt. should not abolish the wealth tax forever, since it is god source of income for the Govt. and if donating is only voluntarily, some billionaires will not do that and they are also not eligible for taxes. So waiving off tax only on the amount donated is a good measure for handling this issue.

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