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> The estate tax has been nearly the best way of reducing wealth inequality, second only to the income tax. Evidence does not bear out this assertion. The Roc
by gvb 9y ago
> The estate tax has been nearly the best way of reducing wealth inequality, second only to the income tax.
Evidence does not bear out this assertion. The Rockefeller Trust is a well documented example of a huge inheritance that was not subject to an estate tax. The common and relatively simple solution to the estate tax is to create trust fund(s) to hold the money.
Ref: https://www.fool.com/investing/2016/09/01/how-rich-is-the-rockefeller-family-today.aspx https://www.fool.com/investing/2016/09/01/how-rich-is-the-ro...
The name John D. Rockefeller has long been associated with immense wealth. In his book Outliers, author Malcolm Gladwell estimated the value of Rockefeller's fortune at its peak, in today's dollars, at $318.3 billion. You read that right: John D. Rockefeller, the founder of Standard Oil, was over three times richer than Bill Gates is today.
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You may know that upon his death, the majority of John D. Rockefeller's wealth went to his only son, John, Jr. But in reality, things are a bit more complicated. In fact, a trust was created, as well as several other entities designed to manage the family money, all to ensure that Rockefeller's descendants continue to live as only Rockefellers can.
- ihsw2 9y agoYou are absolutely correct that it is legally challenging to enforce the estate tax, which is why I am arguing that it should be strengthened as it is important to our democracy. The Rockefeller fortune would have never materialized without the foundation of public laws, public education, and infrastructure that formed the bedrock of American industry in our grandfather's time -- this bedrock continues to support vast fortunes to this day.
- JumpCrisscross 9y ago> I am arguing that it should be strengthened as it is important to our democracy If the goal is reducing inequality, the estate tax is an inefficient battleground. It's politically-expensive territory and policy-wise ineffective compared to e.g. raising the top tax rate or eliminating the carried-interest deduction. (I have come to this conclusion grudgingly, as someone who believes oligarchic dynasties are bad.)
- jameslk 9y agoI don't get the argument the Estate Tax isn't effective enough, therefore it should be repealed. That sounds like a non-sequitur. The solution would be to close the loopholes to make it more effective. Or offer an alternative solution that fulfills it's purpose.