High estate taxes protect democracy

[xpat]

A popular saying is that as the rich get richer, the poor get poorer. That's how an oligarchy works. The ability to accumulate and transmit wealth increases the power of the wealthy at the expense of the rest of us. Over time, the power that accrues to wealth acquires the ability to control government, and democracy disappears.

That, a not a momentary budget crisis, is the fundamental argument for progressive taxation and particularly for onerous estate taxes. A democracy, in order to survive, must protect itself from the concentration of wealth among a few citizens, who then can subvert democracy itself.

During the Eisenhower administration, the highest income tax bracket was over 90%, while today it is in the low 20s. The estate tax, rather than being repealed, should be increased dramatically, along with the income tax on high incomes. Close the loopholes, and save us from the oligarchs.

[vpigrad]

1. The top federal tax rate is not 20%!

It's 35% of your income over $321,200 plus $92,6767 per year.

[cornermouse]

2. The estate tax has become a red herring for all but the

most wealthy. The medical care that you receive at the end of your life will take care of the money/estate thing. Your children will be extremely lucky to get anything. That's a fact.

[xpat]

3. I think you miss the point of my post.

Perhaps, I wasn't clear. Taxation, and the estate tax in particular, should be viewed as tools to preserve democracy from the encroachment of oligarchy. As long as there are no enormous fortunes, capable of wielding political power in their favor, democracy can survive. Taxation is a tool to whittle fortunes down to a manageable size.

[vpigrad]

4. "whittle fortunes down to a manageable size."

Yes, but we shouldn't wait until a person dies to do the right thing. We should start taxing based upon net wealth. People that are worth billions, but don't show any paper profit don't pay a penny in taxes. That's morally wrong.

[xpat]

5. That's right. Close the loopholes. n/t

[cornermouse]

6. Thanks for reminding me that I was going on

4 hours of sleep. That doesn't work for me. I'm still tired. Knock yourself out or whatever.