Inheritance

We're starting to get more flack about "the death tax", and of course, the frame is that we simply must protect the children of the small business owner or the family farmer from losing everything to the Tax Man when the patriarch croaks.  And I'd go along with it if there was any real truth to it.  But there isn't, so I can't.

The National Memo:

You may have heard of the estate tax, but chances are you will never have to pay it, especially now that the Senate has set the exemption at $5 million.

That means that if you inherit an estate, likely because you were born with the right last name, you won’t have to pay taxes on any of it unless its value is over $5,000,000 — then you’ll pay 40 percent on the amount above that, about the same as the new top rate on high earners. And that $5,000,000 exemption will be adjusted for inflation yearly.

The argument I find truly bogus is the one revolving around, "that money's already been taxed..." cuz that one's just pretty dumb.  Every dollar has already been taxed.  The dollar you spend at the movies is an after-tax dollar; so is the dollar you spend on rent or food or gas etc etc etc.  These arguments are in favor of the Ownership Class grabbing more for themselves and leaving less for everybody else.

I have great sympathy for anybody who survives the tragedy of losing a family provider, and we have to make sure we take care of people who need taking care of, so let's be at least a little careful with how we set it up; intergenerational wealth transfer is a good and important thing - we have to put some limits on it though.

So I'm thoroughly unconvinced that a first son or the designated heiress to the family business deserves to be handed a multimillion dollar enterprise at no cost, owing solely to their choosing the right joint to be born into.  Here's a thought: Come up with a business plan, go to the bank, borrow the bucks and let's see if you're as good at farming as your dad was.

Any other way of doing things is anti-competitive, anti-meritocratic, and pushes us all back towards the kind of imperial aristocracy we're supposed to be resisting.