Tuesday, September 7, 2010
- It is foolish to argue that the government needs revenue now more than ever because by that logic, forms of taxation could multiply without end.
- The government’s spending will not remain static when additional revenue is available. Instead, the government will increase its expenditures to take advantage of the additional revenue.
- The estate tax causes people to change their behavior, which is an undesirable quality for a tax.
- Effects of the estate tax kick in before death when planning devices create a private gain and a social loss.
- The argument that the estate tax breaks up concentrations of wealth fails to take into account that an estate is taxed the same regardless of the number of beneficiaries.
- The argument that the government will use the money to improve welfare more than a private individual would is highly improbable and immeasurable.
- The estate tax has a disruptive effect on small businesses.
See Richard Epstein, Let the Estate Tax Die a Merciful Death, Forbes, Sept. 2, 2010.
Special thanks to Jim Hillhouse (WealthCounsel) for bringing this to my attention.