- We don’t like inequality, which is growing
- We don’t want rich people running the world
- We don’t like people having things they didn’t earn
- We have a growing federal debt that is unsustainable
Increasing the wealth tax on the wealthiest estates helps address all of the above and more.
Why in the world is anyone arguing against increasing the wealth tax on the largest inheritances?
After eliminating the carried interest loophole, it’s the easiest, simplest, and fairest way to decrease inequality AND pay down the federal debt.
Apart from a handful of already insanely wealthy heirs being slightly less rich, there is no downside.
No Normal Person Is Against Increasing the Wealth Tax
Sure I get it, taxes are bad. The wealthy deceased already paid taxes (well, in theory anyway).
But so what?
The heirs didn’t earn anything.
Yes, their parents may have worked very hard – good on them!
And leaving something behind for children is part of the American Dream. Everyone wants their children to be better off than themselves.
And that is fine and good. The heirs are still getting huge fortunes.
But these heirs inheriting billions of dollars, and commanding empires they had no part in building, is just not the best use of resources.
Not while the federal debt continues to grow unabated. People are going hungry. Children are living in the streets. The education and healthcare systems are deteriorating.
Tax Capital Gains At Death
An even simpler fix is to tax capital gains at death. As The Economist explains:
“As it stands, someone who strikes it rich on properties or stocks can put those profits beyond the reach of the Internal Revenue Service so long as they hold on to their assets. If their heirs cash out, the basis for their capital-gains level would be the value of the assets at the time of inheritance. The fix for this is relatively simple: tax capital gains at death. This was a key component of Mr Biden’s initial tax plans. But after much lobbying, the proposals now in Congress make no such change.”
Taxing capital gains at death is a fair and simple way to move some of the money away from the one percent and into the federal budget.
Slowing Wealth Gap Growth
Even if it’s a relatively small amount of money, and wouldn’t lower the deficit, I STILL want a higher inheritance tax just to stop the wealth gap from increasing even faster.
Money makes more money. That’s what it does. Any reasonable manner to decrease the vast sums controlled by a handful of people is valid.
If the argument against higher inheritance tax is that “it’s not fair…” Well too bad. Life isn’t fair. Instead of 100 billion dollars heirs only get one billion…. I think they’ll be fine.
What Is The Inheritance Tax?
Inheritance tax is a tax that is imposed on the transfer of property or assets from a deceased person to their heirs. This tax is designed to ensure that the wealth accumulated by individuals during their lifetime is distributed more fairly to society at large and to prevent the concentration of wealth in the hands of a few individuals.
Increasing the inheritance tax can help to redistribute wealth from the wealthy to the less affluent members of society. By taxing inherited wealth, governments can raise revenue that can be used to fund public services and programs that benefit all members of society, including the poor and the middle class.
Reducing The Intergenerational Transfer Of Wealth
One of the key benefits of increasing the inheritance tax is that it can help to reduce the intergenerational transfer of wealth. Wealthy families often pass down their assets and property to their children and grandchildren, who in turn become wealthy and pass down their wealth to their descendants.
In a capitalist system, money makes money, so this transfer of wealth often results in a concentration of wealth in the hands of fewer and fewer people. This perpetuates the concentration of wealth in a few families, leading to a widening income and wealth gap between the rich and the poor.
In addition, increasing the inheritance tax can also help to promote economic growth. This is because it can encourage wealthy individuals to invest their money in productive ventures, rather than simply holding onto it or passing it down to their heirs. When wealth is distributed more widely, it can create a more vibrant and dynamic economy, where small businesses and entrepreneurs have greater access to capital and resources.
It’s Insane This is Even A Discussion
By increasing the inheritance tax, governments can encourage wealthy families to distribute their wealth more widely, rather than concentrating it in the hands of a few individuals, building a society where all members have equal opportunities to succeed.
Increasing the inheritance tax is one of the simplest and most effective ways to combat inequality and promote greater economic growth. By redistributing wealth more fairly and encouraging investment in productive ventures, governments can create a more equitable and prosperous society for all members.
So what in the world are we waiting for?
Let’s increase the wealth tax right away.
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