Tuesday, February 1, 2011
The Modern Aristocracy
Arguments about the equity/efficiency trade-off in regards to taxes do have their merits. I believe this is one policy area where neither side is clearly right, although I do think marginal tax rates on the upper brackets should be increased (if not to 1970s levels).
The case for a higher estate tax seems clear cut. I have yet to see any believable evidence that a higher marginal estate tax would disincentive people to work harder during their lives. A lower tax *may* encourage people to save more, but America needs more spending and less saving, so I don't think this is a desirable outcome.
The dark side of lower taxes on estates is that we inculcate our own version of the European aristocracy as wealth continues to grow across generations. We saw how that worked out.
Labels: The Divine Right of Prep School Alumni
¶ 7:35 AM
