Andrew Tallman Show Topics: Wacky Wednesday--The Estate Tax is good

Wednesday, June 15, 2011

Wacky Wednesday--The Estate Tax is good

Note: Before reading the following arguments, please understand that they are not what I believe. On Wednesdays, I deliberately argue for wrong ideas, challenging my listeners to call and defend the obvious right answer, which is usually far harder than one would expect. This is a summary of what Wacky Andrew will be arguing, not a representation of what real Andrew believes.

--Why should a few wealthy individuals be allowed to hoard their wealth and create a system of defacto aristocratic or feudal system over the course of time because they give it to their spoiled brood?
--Governments at every level are struggling to meet their obligations, and this is a perfectly legitimate way to continue to do so. Tens of billions of dollars are at stake here.
--The rate is fair. 35% is only identical to the highest marginal income tax rate. Even the old 50% or 55% would have been fair since that would just be income tax plus FICA, which you currently escape entirely.
--If it’s non-liquid assets being passed along, it’s very likely they are capital gains that will never be taxed in the hands of the inheritor.
--Unlike income tax, there is no disincentive to work here because it’s not on income. Even Winston Churchill argued that estate taxes are “a certain corrective against the development of a race of idle rich”.
--Whose inscription is on the money? Doesn’t the Bible say render unto Caesar what is Caesar’s?
--This is just a variation on the Bible’s 7 year and 50 year release, at which time debts and land swaps are all returned to the original families.
--Inheritance is contrary to the spirit of capitalism, where each person earns his or her own way.
--Why should the children of wealthy parents win the lottery while the children of poor parents get punished for their parents.
--If you know you aren’t going to be getting it, there is no family squabble about who gets what and how much.
--Jesus told the rich young ruler to sell everything he had and give it to the poor. Why should we do any differently?
--Contributions to charity will be much higher. One of the reasons charities have taken a fairly quiet role in this debate is they know a large portion of their funds come directly from people trying to avoid giving the money to the government.

Resources
Bible References: Gen 25:24-34, Num 27:1-11, Num 36:1-13, Ecc 7:11-12, Prov 13:22, Luke 15:11-32, 1 Peter 1:1-5
Inheritance, Inheritance Tax at the State Level (Wikipedia)
Should Kids Be Left Fortunes, Or Left Out? (

USA