Jacob-- Years ago, I had dinner with an economist who's doctoral dissertation was on the impact of a 100% inheritance tax. Contrary to some of the posts, the impact was to stimulate the economy. !) The very rich would be forced to distribute their money to people who have lower marginal propensity-to-save curves--usually the heirs, which is a stimulus, 2) or give it away to charities or whatever, which again become more of an economic stimulus, or 3) pay it all in taxes--which obviously has a positive effect.
Now, for personal reasons there is legitimate dispute about what we own. However, the current exemption of $1.2 million seems fair to me. I can't help but read those wanting to raise it to $5 million, as they own $4.5 million.
However, the economic impact of the 100% inheritance tax is a stimulus. I, personally, would rather see 100% than zero inheritance tax to maintain the meritocracy. I do, however, prefer the current exception.
fred |
