CNN Breaking: Senate kills legislation to permanently repeal estate tax

[corporatemedia]

CNN MONEY HEADLINE

Senate kills legislation to permanently repeal estate tax, Reuters reports. More soon.

http://money.cnn.com/index.html?cnn=yes

UPDATE:

Link for story:

http://money.cnn.com/2006/06/08/pf/taxes/estate_tax_debate/index.htm

[speedoo]

1. Now THAT'S what I'm talking about!!

Awesome news.

[El Supremo]

18. Now if they would spend this money on the poor rather than...

that God damned Iraq War!

[coalition_unwilling]

50. Let's declare the "War on Terror" a wash and declare

a "War on Greed" :)

[IthinkThereforeIAM]

64. Tim Johnson, D-SD...

... was just on , the local CBS affiliate in Sioux Falls saying "the money from billionaires estate taxes will make Social Security solvent long into the future".

[Virginian]

2. YES!!!!

Now the wealthy, too, can contribute to the government coffers.

The wealthy should contribute their fair share. After all, they have the most to lose.

[Justitia]

3. So all you DUers leaving more than $ 7 mil to your kids are gonna have to

let the kiddos know they gotta pay taxes on their windfall.

:cry:

[BrotherBuzz]

32. Does that include the 20 million we laundered and hid in an

offshore bank? Inquiring minds want to know. ;)

[Justitia]

45. Dick? Is that you?? LOL -eom

[BrotherBuzz]

52. Nah, my close business associates call me Mr. Ken Who

:rofl:

[davepc]

101. actually anything over $600,000

[hexola]

102. Anything over 1 mil--i.e.1 mil for husband and 1 mil for wife

a married couple can have 2 million

[davepc]

107. After 2010, it goes back to 2001 levels

So if your leaving money for your kids, die in 2010.

[sandnsea]

113. The exclusions will be fixed by then

And they're currently at $2 million and set to go up to $3.5 in 2009. They can also gift another million or more through the annual gift and the unified gift credit. If I have to pay a chunk of taxes when I win the lottery, people who didn't do a thing to earn a windfall inheritance can pay tax too.

[wordpix2]

4. ahahaha, take THAT you fat cat bastards

:rofl:

[station agent]

72. Awww... But someday I'm going to be a bazillionaire...

Now I will have to be twice as ruthless to make my no good spoiled kids rich soulless republicans.

[KansDem]

98. Ahhh, wordpix2, you're engaing in "class warfare."

AND I'M LOVING IT!!!

Bring it on...!!! :kick:

[flamingyouth]

5. Good news!

:thumbsup:

[bdamomma]

Yesterday the FMA defeated

and estate tax today great news. :thumbsup:

[Grateful for Hope]

6. This is awesome!

Best news I have heard in quite a while.

[cureautismnow]

7. Score one for the Unfortunate Sons and Daughters. n/t

:thumbsup:

[theDash]

8. Senate kills legislation to permanently repeal estate tax

On money.cnn.com

No story, just a breaking news headline at the moment

[No DUplicitous DUpe]

9. That is not what the King wanted...what is going on?

Is there a rebellion in the halls of congress??

[mom cat]

41. It is called Novemberphobia.and is highly contagious.

[alfredo]

10. Hooray!!!!!

[smoogatz]

11. Wow. Let me check the date--

--nope. Not April Fool's day...

[theDash]

13. link

http://money.cnn.com/2006/06/08/pf/taxes/estate_tax_debate/index.htm

[wryter2000]

80. Welcome to DU

:hi:

[Purveyor]

12. Here is a clip from Bloomberg on this story...

June 8 (Bloomberg) -- The U.S. Senate voted to block a repeal of the federal tax on multimillion dollar estates, dealing a setback to Republicans and the Bush administration.

The Republican proposal failed to clear the 60-vote threshold necessary to overcome a procedural hurdle. The 57-41 vote ends for now the hopes of opponents that the levy, dubbed a ``death tax'' by Republicans, will be permanently repealed.

Senate Minority Leader Harry Reid, a Nevada Democrat, said Republicans were focusing on a tax that affects less than 1 percent of the population while ignoring higher priority items such as gas prices, uninsured workers, a rising national debt, and an outdated minimum wage.

``The estate tax is not high on the agenda of people in Nevada,'' he said. ``I think we're wasting precious days.''

The Senate was the last hurdle for groups that have lobbied for repealing the estate tax for more than a decade. The House of Representatives voted 272-162 in April 2005 to repeal the tax on a permanent basis, and the Bush administration says it wants to abolish the levy. The Senate fell six votes short of repealing the tax permanently in 2002.

--snip--

http://www.bloomberg.com/apps/news?pid=10000103&sid=ac3zNQrZfmzE&refer=us

[Romberry]

19. 57-41? Which Dems voted for the repeal?

I'd like to see the votes on this one. Why would any Dems join with the Republicans to vote for this?

[Cha]

56. That would be interesting..

the usual dinos?

[wordpix2]

90. 4 Dems defected to Repubs and 2 Repubs had some conscience. See this:

snip: Two Republicans — Sens. George Voinovich of Ohio and Lincoln Chafee of Rhode Island — joined 39 Democrats Thursday in blocking a full repeal.

"Repealing the estate tax during this time of fiscal crisis would be incredibly irresponsible and intellectually dishonest," Voinovich said.

Four Democrats — Baucus, Blanche Lincoln of Arkansas, Bill Nelson of Florida and Ben Nelson of Nebraska — supported the proposal.

At a news conference following the vote, four Republican senators who supported full repeal indicated they hoped a compromise would be possible.


http://www.usatoday.com/news/washington/2006-06-08-estate-tax_x.htm

Note the fat cats' senators are coming back with a compromise before July 4. :puke:

[LuckyLib]

112. The Nelsons (Bill and Ben) also voted to approve the new

military CIA head. OK, you Floridians and Nebraskans, get these idiots OUT of Congress!

[Cha]

55. Good ol' Reid..ya

gotta love him sometimes..

"Senate Minority Leader Harry Reid, a Nevada Democrat, said Republicans were focusing on a tax that affects less than 1 percent of the population while ignoring higher priority items such as gas prices, uninsured workers, a rising national debt, and an outdated minimum wage.

``The estate tax is not high on the agenda of people in Nevada,'' he said. ``I think we're wasting precious days.''

[drm604]

14. Happy Dance!

:bounce::bounce::bounce::bounce::bounce::bounce::bounce::bounce:
:bounce::bounce::bounce::bounce::bounce::bounce::bounce::bounce:
:bounce::bounce::bounce::bounce::bounce::bounce::bounce::bounce:

[ncrainbowgrrl]

15. Excellent news! Glad to hear this about the "Paris Hilton Estate Tax"

:hi:

[Coexist]

16. This is FANTASTIC!!

I am really happy with all the news today - except the Stock Market keeps tanking. That sucks.

[femrap]

36. Sometimes I look at the stock market and think

that when it tanks, another few thousand Americans wake up to WTF * is doing. Getting hits in the pocketbook usually wakes people up! So maybe it isn't all bad.

And after all, what goes up has to come down.

Great news about the Estate Tax! A few weeks ago, I saw on TV (60 Minutes, maybe) some super rich guy telling the prez that he didn't need anymore money....and a number of his friends agreed with him. These rich folks were seeing what this great imbalance of wealth was doing to our nation....killing our fragile economy and putting our Democracy at risk.

Anyone else see that show? I can't remember the name of the man interviewed. A Rockefeller or Mellon...someone along those lines, I believe.

[Coexist]

40. I wish I had seen that.

It reminds me of Michael Moore having a contest to see which charities he would donate his new tax cut to.

You might like this site:
http://www.responsiblewealth.org/commonwealth/index.html

[CatholicEdHead]

61. That is because they can see long term

and they want to maintain their status. If the imbalance keeps growing, even they will loose their money and status in the long run.

[havocmom]

62. Warren Buffett? He is pretty rich and knows the rich are doing too well

under the junta. He knows it is not good for America and has been vocal about it.

[wryter2000]

82. Warren Buffett and Bill Gates

Buffet has said, "If there's class warfare going on, my class is winning."

Bill Gates' father (I believe) is a motivating force behind www.responsiblewealth.org.

[wordpix2]

86. Bill Gates Sr. has been out doing talk shows about this on the anti-repeal

side. Even though he's rich, he doesn't mind handing some of what he's earned over to the US Treasury when he's gone. He says the U.S. government and its policies helped make their good fortune happen in the first place. (In the case of richies from companies like ExxonMobil/Halliburton/KBR/Carlyle Grp, ain't that the ABSOLUTE truth!) Sweet guy. :pals:

[xxqqqzme]

93. I didn't see the program

but I know Warren Buffet and Bill Gate's dad were campaigning against the repeal. Whe Moyers still had NOW, he interviewed them both...so that was a couple of years ago.

[PegDAC]

106. I think it was one of the Rockefellers.

I know that a member of that family, as well as Bill Gates, Sr., and quite a few other relatively high-profile wealthy people were very vocal about their opposition to the repeal.

[Scriptor Ignotus]

17. from yahoo

http://news.yahoo.com/s/ap/20060608/ap_on_go_co/estate_tax

WASHINGTON - Senators voted Thursday to reject a Republican effort to shrink taxes on inherited estates during this election year.
ADVERTISEMENT

GOP leaders had pushed senators to end the tax once and for all. It disappears in 2010, under
President Bush's first tax cut, but rears up again a year later.

"This death tax is unfair," said Senate Majority Leader Bill Frist, R-Tenn.

A 57-41 vote fell three votes short of advancing the bill.




Unfair? You know, passing a $10 TRILLION debt on to our children is also unfair. How about we tax the people who actually have money to help pay it down?

[Justitia]

27. unfair for him - his daddy is leaving him billions from defrauding Medicar

Medicare, Medicaid and Tricare for all those years w/HCA.

Now Frist will probably have to pay some taxes on his ill-gotten gains.

Then again, probably not.

[Dr.Phool]

20. I knew it was in trouble when

I was in the next room with the volume turned up for the vote, and I heard "Mr. Voinovich-NO". We needed a couple of republican defectors to kill it, because a few of our DINO's were going along with it.

I never cared much for Voinovich. I lived in Cleveland when he was the Mayor and Governor, and then Senator. But, he has come through on a couple of crucial issues.

[Fridays Child]

21. Chimpy's base may have to organize a Brooks Brothers riot redux.

This will never do.

[wordpix2]

89. LOL, I think they might be rioting at Neiman Marcus and Saks soon

[rocktivity]

22. Yay--something got killed today that I can GENUINELY get excited about!

:bounce:
rocknation

[fasttense]

23. Now, now

All those newly created multi-billionaires are very, very upset. You know they pay their fair share. First they buy up all the republican politicians they can afford, then they have to turn around and pay taxes too. Well it's just not fair. :sarcasm:

[AndyA]

24. Ummm...this is NOT according to plan. Who fucked up?

Little Lord Pissypants will not be pleased, he's going to be getting calls from all his multi-billionaire friends, and their children, wanting to know why he hates America so much!

:rofl:

Good news! Take that, you bastards!!!

[Dr.Phool]

37. Voinovich threw the monkey wrench in the works!

Had he not voted his conscience, it would have passed.

Now, I want to know which Dems voted for it. During the vote, I heard "Mr. Nelson-Nebraska-AYE" And I'm sure Bill Nelson did likewise. Who were the rest?

[Adenoid_Hynkel]

104. occaisonally he seems human-he was against bolton, too

but he, for the most, sticks with the fascists and, therefore, must be voted out

[dogday]

25. Very glad to see this

:bounce:

[sinkingfeeling]

26. Sen. Lott is promising to sneak it into unrelated legislation later this

year.

See here:http://www.usatoday.com/news/washington/2006-06-08-estate-tax_x.htm

[FreeStateDemocrat]

38. Lott is a bastard that the sooner he leaves this earth the better for all.

He is an arrogant, greedy PRICK!

[AndyA]

42. God tried to get him with the hurricane last year, but he wasn't home.

Lott is one of the worst of all time!

[ContraBass Black]

28. Excellent.

What else is going on?

[catmandu57]

29. Poor paris

Poor 17 rich piggie families that spent all that money to get their way, poor, poor sons o bitches, eat beans like the rest of us, fucking scum suckers, my heart bleeds.

[Orrex]

30. Too subtle!

This is a golden opportunity for me to re-pitch my flat tax proposal:

All assets and income in excess of $5M are taxed at a flat rate of 99%. Totally equitable, IMO.

[catmandu57]

54. I can dig it

hell I'd go for 99.5.

[gaspee]

31. Once again

Chafee votes with the dems. Damn, why is this guy a repuke. On the outside chance he wins his seat again (I think he's toast) he really should go independet.

And I really like seeing his vote because his family is definetly among that 1% who is affected by this tax. Good for him.

The reason he's toast is because he might lose his primary to the backwasher, Laffey. If he wins his primary, he's going to lose in the general. Good. He should have gone independent or switched parties awhile back. His votes are all well and good, but as I like to tell anyone who will listen to me "A vote for Chafee is a vote for Bush, Frist and (I used to say) DeLay.

[Orsino]

33. That's incredible!

How could so many senators vote against their personal interests?

Hopeful sign.

[wryter2000]

83. That's a good question

Is Rockefeller personally affected?

[KingFlorez]

34. Good news

Finally something good happens

[rodeodance]

35. 'Bush raises taxes"---spread the word

[HughBeaumont]

39. TAX WORK NOT WEALTH!

Widen the Income Gap!

Job offshoring is good for you, and don't you forget it! Now manufacture me a cheeseburger, HUZZAH!!

What's next, will us billionaires have to pinch pennies? It's not FAIR that I have to pay taxes! Taxes are for the help!

http://billionairesforbush.com/index.php

"If you want to know what God thinks of money, just look at the people he gave it to." - Dorothy Parker

[warrens]

43. Take that, Waltons!

Have I ever mentioned how much I despise those people? Sam was a good guy; these leeches have never worked a day in their lazy, right-wing lives.

[LynneSin]

44. DAMN THOSE DLC DEMOCRATS FOIL US EVERY TIME!!!

Oh wait - this is good isn't it?

:eyes:

[wakeme2008]

49. I will bet DLC Nelson of Florida voted for it

:grr:

[Dr.Phool]

57. I know he was supporting it.

I didn't hear the entire vote, but I did here DLC "Senator Nelson-Nebraska, AYE"!

The only good Nelson's were Ozzie and Harriet.

[LynneSin]

59. Who cares - we needed 41, we got 43

and who would you prefer representing Florida in 2007? Ben Nelson (who is pretty much running unopposed on his ticket) or Katherine Harris.

Oh and edit note - Florida Nelson supported us with defeating that we-hate-gays amendment yesterday. It's Nebraska Nelson that didn't

[wordpix2]

91. Good guess, BINGO! Here are the defectors on both sides:

http://www.usatoday.com/news/washington/2006-06-08-estate-tax_x.htm

snip: The House has voted for full repeal several times, mostly recently in April 2005.

Any Senate legislation that falls short of a full repeal would be subject to House-Senate negotiations.

Two Republicans — Sens. George Voinovich of Ohio and Lincoln Chafee of Rhode Island — joined 39 Democrats Thursday in blocking a full repeal.

"Repealing the estate tax during this time of fiscal crisis would be incredibly irresponsible and intellectually dishonest," Voinovich said.

Four Democrats — Baucus, Blanche Lincoln of Arkansas, Bill Nelson of Florida and Ben Nelson of Nebraska — supported the proposal.

At a news conference following the vote, four Republican senators who supported full repeal indicated they hoped a compromise would be possible.

Sens. Bob Bennett of Utah and Conrad Burns of Montana said they were willing to support the Kyl compromise.

"This issue will be back," vowed Sen. Trent Lott of Mississippi.

[brentspeak]

105. I'd like the anti-Liebermans to explain why he voted to kill the bill

Doesn't exactly support their accusation that Lieberman is a "Republican in disguise", does it?

[Tunkamerica]

114. what type of disguise would it be if it were totally see-through? n/t

[Zhade]

116. They didn't get the chance this time.

And I imagine at least a couple of them know this is a shameless giveaway to the rich.

[NastyDiaper]

46. Bully good job Senate!

[lonestarnot]

47. Woodamnwhoo! Good on them for a fucking change.

[katinmn]

76. Yes!! Finally!

:toast:

[lonestarnot]

111. Yes sireeeee. Never would have thought I'd see the day they did some'n

right. :toast:

[Up2Late]

48. Finnaly, some good news!

It's so unfair to the ReThugs. :nopity:

[notadmblnd]

51. There was a story here late last night saying the IMF

said that the US needed to raise taxes. I wonder if that had anything to do with it?

[Cha]

53. Poor

walmart..all that lobbying for naught..this surprises the heck outta me.

[JPZenger]

58. Looks like the Dems held together

It looks like almost all the Dems held together on a matter that is basic to party principles.

The idea is to avoid the creation of a permanent aristocracy of inherited wealth, and instead to have a country based on merit.

The expectation is that the Senators from Arkansas would vote for repeal of inheritance tax becaue they really are the Senators from Walmart. The inheritance tax repeal effort has been bankrolled by millions of dollars from 20 of the richest families in the US, including the Waltons.

Randi Rhodes was referring to this as the Paris Hilton Tax.

[dweller]

60. damn, now someone will have to console Paris Hilton ...

any volunteers?

not me bucko,
dp

[corporatemedia]

68. You're right.. I guess I'll have to let her give me a blow.....

dry. (I just washed my hair.)

Anything else she wants, she PAYS FOR!

[NavyDavy]

70. ok ok I will do it....and her little dog too...hehehe jk : )

[dkos refugee]

63. I'm surprised

Although I'm even more surprised they didn't try and stick this onto an Iraq funding bill...

[wryter2000]

84. Welcome to DU

:hi:

[dkos refugee]

65. Public opinion?

Does anyone have a link to any recent polls that show how informed the people are on this topic? Back in '04 most people thought the "death tax" effected them. It was sad... but I'm hoping people know better now.

[rocktivity]

97. People know better

if this poll from MSNBC is any indication.

And here's what currently on CNN's home page:

Do you think the death of Abu Musab al-Zarqawi will slow the insurgency in Iraq?

Yes 36%

No 64%

Total: 130379 votes

[azmouse]

66. Good! That should really piss off AZ Senator Jon Kyl !!

From the AZ Republic: http://www.azcentral.com/business/columns/articles/0608biz-talton0608.html

Kyl's estate-tax push benefits only superrich

In an opinion column in USA Today, Kyl said the estate tax "means the government will take nearly half of everything you have worked for and saved, over an exemption of $2 million, even after you have paid taxes throughout your life."

This is part of the Republican strategy to convince working Americans that their economic interests are the same as the richest even though evidence fails to support this.

Factoring in loopholes means this year the tax would affect only 12,600 taxable estates out of a country of almost 300 million people. And this wealthy elite has enjoyed a lifetime of the best advice on tax dodges that money can buy. The idea of the estate tax stealing the family farm is a well-told yarn.

-----

The estate tax has roots both in the long-standing American belief in meritocracy instead of a hereditary moneyed elite and in the depredations of the robber barons of 100 years ago.

The estate tax was part of a broader social contract of the 20th century, which established the fairest, most economically mobile society in history. This achievement was not just an accomplishment of the market nor a nation where policy so favored the rich and powerful.

Somehow the compact, estate tax included, allowed families such as the Bushes and Frists to amass and pass on plenty.

Yet the estate tax is under attack, along with pensions, job security, health benefits and federal funding for Medicare, Medicaid and education. The kinds of critical investments in research and infrastructure that helped make America a superpower are now either being slashed or ignored.

It's no surprise that income inequality has reached levels not seen since the 1920s.

In other words, repeal or further reduction of the estate tax is radical. Brookings Institution scholar Diane Lim Rogers calls it a "birth tax" on every baby born in America.

They will have to pay for this giveaway to the superrich.

[truthisfreedom]

67. guys, guys, there's a workaround. the moral of this story is, don't die!

just get frozen alive.

[DixieBlue]

69. Yippee!

That is good news!

[wryter2000]

85. Welcome to DU

:hi:

[FredScuttle]

71. SELF DELETE

[Nimrod2005]

73. WTF? Frist on CNBC this morning yapping about it?

What losers these asshole are...Just mislead as often as they can...He was confident blah blah blah

I can't wait for his ankle bracelet!

[wordpix2]

94. "I can't wait for his ankle bracelet!" LOL, maybe Paris will visit him

in jail for trying.

[xthetylerx]

74. YEAH!

This is great news!

[wryter2000]

87. Welcome to DU

:hi:

[rigel434]

75. DINOs: Baucus, Lincoln, and the Nelsons ...

were the DINOs voting for cloture according to this article. The articles mentiones the Nebraska Nelson twice but I assume they mean the Florida Nelson as one of them- guess he was bought and paid for by the old geezers in Florida.

http://www.farmfutures.com/ME2/dirmod.asp?sid=CD26BEDECA4A4946A1283CC7786AEB5A&nm=News&type=news&mod=News&mid=9A02E3B96F2A415ABC72CB5F516B4C10&tier=3&nid=9D82BFD9F92D480EB2916F0A31426730

Sens. Max Baucus, D-Mont., Blanche Lincoln, D-Ark., Ben Nelson, D-Neb., and Bill Nelson, D-Neb., were the only Democrats to vote in favor of cloture,

[katinmn]

77. Hmm. Schumer wasn't voting

[wryter2000]

88. Welcome to DU

:hi:

[wordpix2]

95. yes, Nelson of FL also defected.

[brentspeak]

103. Those four Democratic blockheads better straighten up

the next time this stupid repeal effort is brought up again (and it sounds like it will). This is one of the few legislative issues that would make me turn against a Democrat (should they favor an Estate Tax repeal).

[sakabatou]

78. Woo-hoo!

[pinto]

79. Kick. Real good news.

[BrklynLiberal]

81. You mean the Paris Hilton Tax won't be permanently repealed??

:rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl:

[wordpix2]

92. this is one political issue Paris is very involved with, er,the only issue

:rofl:

[last_texas_dem]

96. Great news

It scares me, though, that these votes are even as close as they are. This vote surprises me a little considering what the vote was for the "federal marriage amendment" the other day. There are really more Republicans who are against a Constitutional amendment banning gay marriage (I do support gay marriage, but it's a relatively new concept) than are against abolishing a part of the progressive tax system that has been around, I believe, for a century or so? We seem to be making a lot more progress on social issues than we are on economic issues... In the end, though, I'm glad that both attempts at asinine legislation failed.

[Zhade]

99. Sweet!

Fuck the rich!

Except for the liberal rich, who would NEVER take the money if this had passed.

...

:rofl:

Yeah, right.

[Orion The Hunter]

100. Nice work, Senta (for a welcome change)

Why are they even giving this legislation any thought?! I mean like the rich need to get richer (and I'm in a high tax bracket!!).

[shortcake]

108. They still don't

pay. Just set up living trusts so their is not tax.

[Unkle Karl]

115. Trusts don't help, by the way

Trusts do nothing to protect wealth from estate taxes. While I may depart from the orthodoxy of this site on this lone issue, I should probably comment that this is yet another election-year piece of legislation, intended only to garner votes.

Trusts prevent assets from going through the probate process, but do not have any impact on taxation. To avoid estate taxation, there are a variety of diffent techniques that will fully insulate 100% of a person's assets...and it is all perfectly legal. In fact, it's so legal that one doesn't even need to try and "bend" a tax law in order to benefit from it. And you can bet people in the higher tax brackets use these techniques, and don't give two shits about the estate tax repeal.

My wife and I are proud members of the DNC. But, we have a household yearly earning of over $200,000. We give our money to charities of our choosing, and as of this past April, we paid a total of $2200 in Federal Income Tax...all legal. This may not fly very well with many of you, and that's OK. We operated according to the letter of the law, and last year, we gave away $35,000 to various charities...United Way, Boy Scouts, Red Cross, etc...

[NotGivingUp]

109. Yes...a bit of good news...it's almost shocking cuz it happens so rarely!

[lakercub]

110. What would Carnegie say

from http://www.pgtoday.com/pgt/articles/mt_rushmore_and_a_history.htm

Andrew Carnegie
While more suspicious of government intervention than Paine, Andrew Carnegie heartily endorsed estate taxes. The greater part of this steel magnate’s little magnum opus, The Gospel of Wealth, is devoted to a discussion of the three possible ways to dispose of wealth: (1) leave it to the families of decedents, (2) bequeath it for public purposes, and (3) administer it during one’s life. Carnegie abhorred the first, tolerated the second, and encouraged the third.

He asks his reader: “Why should men leave great fortunes to their children?” If it is from affection, then it is a misguided affection because “great sums bequeathed often work more for the injury than the good of the recipients.” The instances of public servants that live off their wealth in order to devote themselves to community service are rare. “It is not the welfare of the children, but family pride, which inspires these legacies.”

Carnegie sharply distinguishes between the intended consequence of the inheritance tax (to create funds for public purposes) and its unintended consequence (private philanthropy). The unintended effect of the tax is “to induce the rich man to attend to the administration of wealth during his life.” Wealth is a trust fund for the community that helps the rich “dignify their own lives.”

According to Carnegie, philanthropy in a capitalist economy solves the problem of rich and poor alike. “The laws of accumulation will be left free, the laws of distribution free. Individualism will continue, but the millionaire will be but a trustee for the poor.” Carnegie concludes his famous tract with the words: “The man who dies rich dies disgraced.”

Carnegie practiced what he preached and gave away more than 90 percent of his estate before his death, leaving a modest trust fund for his family. He included a trust fund for Theodore Roosevelt’s widow because the government at the time made no provision for the wives of former presidents.

A couple more good opinions at this site.