

Jan. 1: A Good Day to Die  - cwan
http://taxprof.typepad.com/taxprof_blog/2010/01/jan-1-a-.html

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ShabbyDoo
A friend who considers himself a "progressive" and lumps both the Democrats
and Republicans together under the label of "corporate shills" favors the
estate tax because he fears a concentration of power. If those who inherited
billions simply bought lots of houses, cars, and boats, he would have little
issue. However, he's concerned that democracy requires a more even wealth
distribution. I don't necessarily agree, but I thought his point that a
concentration of power is what ought to be feared is worth consideration.

A few years ago, my wife and I toured the summer "cottages" of the Vanderbilts
and others in Newport, RI. At the turn of the century, they spent millions
constructing homes that they planned only to occupy for about three months of
the year. Today, Anderson Cooper (son of Gloria Vanderbilt) is probably the
richest of the heirs to this fortune -- hardly a great case for the estate
tax. In the 70's, there was a Vanderbilt family reunion at Vanderbilt
University. Of the 100 or so people who attended, none reported to even to be
a millionaire. Perhaps a family tree with many siblings per branch divides
wealth faster than it can multiply over time?

Until recently, a Rockefeller was the Governor of WV, but no one seemed to
care that he was not a self-made man. Surely the majority of West Virgina
residents would have little in common with his ancestry. Can anyone cite any
cases of old money abusing power? One could point to the Bush family, but I
argue that they aren't especially wealthy by current US standards. Didn't "W"
claim only $8M in assets at election time? However, He is a third generation
elected official. Perhaps power is more easily inherited than wealth?

~~~
walkon
If the federal government was truly concerned about a "concentration of
power," then why isn't it concerned with itself? It is the most powerful
entity on the planet, exercising coercion and destruction on a massive scale.
Taxing people's estates at death on money that's already been taxed is
preposterous. This is an example of the government using coercion to raise
money for itself and nothing more. This is the type power one should be
concerned about.

~~~
hassing
It's really not that strange that inheritance is taxed. People get emotional
about it because of death is involved. But in the end it's a matter of money
changing hands - even if one of them is cold.

~~~
nazgulnarsil
people get emotional about it because making your childrens' lives better is
one of the _fundamental human motivations for collecting resources_.

~~~
hassing
That might be. But that still doesn't change the fact that your children
aren't you. If you're hire your son or daughter to work for you then they
still have to pay taxes.

I don't like taxes anymore than the next guy. I just don't like the idea that
Mr. X should be better of than Mr. Y because Mr. X's grand parents where more
successful. You should be able to provide for your children, but it should not
excuse them from participating in society themselves.

~~~
dantheman
Mr. X will be better off then Mr. Y because his grand parents were concerned
with his education, were able to provide guidance, had influence, were well
respected, etc. Why do we allow all other forms of inequality than money?

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babyshake
I would be supremely interested to see a Nate Silver style analysis of deaths
of wealthy persons during 2010, to see if there is a statistically significant
jump.

Personally speaking, I'm split on my opinion of the estate tax. On one hand,
it helps fulfill the mostly empty promise of a true meritocracy. But
considering the various horrors associated with the spending of taxpayer
money, I'm fully sympathetic with those who are opposed to the tax.

The estate tax would likely be more acceptable if the deceased were able to
provide some amount of direction in their wills about the use of the collected
tax revenue, but I suppose that would open up a whole can of worms.

~~~
ryanwaggoner
_The estate tax would likely be more acceptable if the deceased were able to
provide some amount of direction in their wills about the use of the collected
tax revenue, but I suppose that would open up a whole can of worms._

Actually, they can do exactly that by donating their estate to charity instead
of bequeathing it to their heirs.

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NathanKP
A difference of plus or minus 50 deaths doesn't seem like enough to be a
trend. It could just be chance.

That said the full paper is much more interesting than the brief example in
the submitted link:

<http://www.bus.umich.edu/OTPR/WP2001-3paper.pdf>

