Tuesday, December 07, 2010

Which side are you on?

Over at FireDogLake we are reminded how liberals think by news about the so-called "death tax":
The $5 million, 35% estate tax is a crime. That’s LOWER than the lowest rate under the Bush estate tax, outside of 2010, when the estate tax disappeared. So Republicans get that restored at the lowest rate in history. Even in this weekend’s aborted tax bill in the Senate, Max Baucus included what has become the default Democratic policy, a return to 2009 rates, with a $3.5 million dollar exemption and a 45% rate. (Personally, I favor just returning to Clinton levels.)

There’s no way on the planet to describe that policy as stimulative. You’re just giving more money to the heirs of the ultra-rich.
Firstly, when can we be be done with "stimulus" - "stimulation" - "stimulative" and any other thing meant to describe another failed policy inflicted on us by the Obama administration?

Secondly, whose money is it anyway?
Liberals constantly argue that the death tax is necessary to prevent the concentration of wealth in a limited number of families. The truth is the exact opposite, however. The death tax is actually a stern government mandate on legacies that erodes the freedom of society. Like the law of entail, it hardens economic distinctions by making it more difficult for families to make their legacies mobile and flexible, leaving that privilege only for those wealthy enough to hire the expensive estate lawyers and accountants necessary to protect their funds. In the meantime, it severely restricts the ability of regular families without the resources to pay for expensive estate planning, especially those with small businesses, to pass along the business accomplishments of their lifetime to be built upon by the next generation. The death tax is even worse than entail because the government confiscates the hard-earned returns of families. At least under entail the government didn’t benefit directly. What better discouragement to the entrepreneurial spirit of the middle and working classes than to ensure that the fruits of their hard work and ingenuity can’t be passed on to the next generation?
Death Tax and Democracy

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