Quote:
Originally Posted by Harry Lime
Because this argument has a strong personal effect on everyone living in this country. The side that argues against an estate tax is essentially arguing on behalf of a small percentage of the population.
I'm just wondering if some very intelligent and influential people on this forum are taking a position that is self damaging because of a certain political bent, or because they enjoy the argument itself.
I don't see this as being about the reach of government, or ownership of property at all. Is there a number that would make both sides happy, as opposed to a black and white argument? How about a 20M exemption? That should be enough of a leg up for any child of the privileged few.
And they would still get a large portion of the taxed amount as well.
Is this an all or nothing argument? I kind of feel that the cross section of CP users can solve this issue in one day where it would take years or decades for our elected officials.
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You are working from the assumption that an estate tax is good, and thus are concluding - from that view - that anyone arguing against it is arguing against their own best interests.
I think that is a very incorrect premise and assumption on your part.
And to answer your other question, as someone who does estate planning for very high net worth individuals, I have a lot more personal experience and knowledge of the issues than simply an academic debate.
It isn't an argument just for a small portion of the population, it is a question about maximizing utility.
And with respect to drawing a line somewhere, where do you draw it? What is the number that says 'you have more than enough, so we are going to double tax you'? (hint: the personal answer to that, for almost everyone, is anything more than
I have).
And two things happen when you set a level like that (say, taxing anything over $10M or whatever). First, it then becomes very easy for the government of the day to lower the number (and it is politically impossible to
raise the number). And second, inflation reduces that number annually.
The moment you start, you are heading down a slippery slope. So yeah, it kind of is an absolute question. Because an estate tax doesn't really punish the ultra-wealthy, it punishes the successful middle class, because they are less able to plan (and also because slapping an additional tax on $5 or $10M significantly changes that family's wealth, but someone with 9 or 10 digits probably has it all sheltered anyway.