Wednesday, May 24, 2006

Estate Tax Part 3 (Wrap-up)

I'd like to thank "Michael" for leading a civil, yet instructive, discussion on the estate tax yesterday, a discussion marred only by my insufferable gloating, and MoC's careless remark about Pravda.

For those of you who don't bother reading very long threads, here's the money quote:
"Ezzie, stop talking for a minute and think. There are very good reasons for rich people to pay more taxes than poor people. The justification is almost infinite. The only limit on raising taxes on rich people is the effect that those taxes will have on economic growth. Once you raise taxes too much, you begin killing the goose that laid the golden egg. But, the estate tax does not do that, so lets have at it!"
Other takeaway points:

What are the good reasons for the rich to pay more taxes than poor people? Simple. They receive more from government. They guy making $18,000 receives almost no benefit from our national expenditures for defense, diplomacy, and business development. He receives less from public education, and public safety, and he make less use of the public infrastructure

What are the effects of the estate tax on the economy? Almost negligible. The estate tax is assesed after death and death is not a disincentive to work. Also, a credible study was put forward which show that the repealing the estate tax would cost charities $20 billion per year.

Any questions?

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