Inheritance tax
tax paid by a person who inherits the estate of a natural person who has died
(Redirected from Estate tax)
An inheritance or estate tax is a tax paid by a person who inherits money or property.
Quotes
edit- Dynastic wealth, the enemy of a meritocracy, is on the rise. Equality of opportunity has been on the decline. A progressive and meaningful estate tax is needed to curb the movement of a democracy toward plutocracy.
- The free market’s the best mechanism ever devised to put resources to their most efficient and productive use. … The government isn’t particularly good at that. But the market isn’t so good at making sure that the wealth that’s produced is being distributed fairly or wisely. Some of that wealth has to be plowed back into education, so that the next generation has a fair chance, and to maintain our infrastructure, and provide some sort of safety net for those who lose out in a market economy. And it just makes sense that those of us who’ve benefited most from the market should pay a bigger share. … When you get rid of the estate tax, you’re basically handing over command of the country’s resources to people who didn’t earn it. It’s like choosing the 2020 Olympic team by picking the children of all the winners at the 2000 Games.
- Warren Buffett, statement to U. S. President Barack Obama, as quoted in The Audacity of Hope: Thoughts on Reclaiming the American Dream (2006), Ch. 5
- The growing disposition to tax more and more heavily large estates left at death is a cheering indication of the growth of a salutary change in public opinion. The State of Pennsylvania now takes--subject to some exceptions--one-tenth of the property left by its citizens. The budget presented in the British Parliament the other day proposes to increase the death-duties ; and,most significant of all, the new tax is to be a graduated one. Of all forms of taxation, this seems the wisest. Men who continue hoarding great sums all their lives, the proper use of which for - public ends would work good to the community, should be made to feel that the community, in the form of the state, cannot thus be deprived of its proper share. By taxing estates heavily at death the state marks its condemnation of the selfish millionaire's unworthy life.
- Andrew Carnegie, "Wealth," North American Review, June 1889.
- It's not fair to tax the same earnings twice—once when you earn them, and again when you die—so we must repeal the death tax.
- George W. Bush, as reported by Michael J. Graetz and Ian Shapiro in Death by a Thousand Cuts: The Fight over Taxing Inherited Wealth (2011), p. 152
- In the United States, for example, a majority of the population favors abolition of the estate tax—what the ideologues of the ruling class now call a “death tax”—believing that it affects them, and that it results in the loss of family businesses and farms. In fact, only 2% of the population pays the estate tax, and there is no documented case of families losing their farms or businesses as a result of the tax’s operation. Examples like this—in which the majority have factually inaccurate beliefs, that are in the interests of those with money and power—could, of course, be multiplied. Does this just happen by accident?
- Brian Leiter, "The Hermeneutics of Suspicion: Recovering Marx, Nietzsche, and Freud," in The Future for Philosophy (Oxford: Clarendon Press, 2004)
- A heavy progressive tax upon a very large fortune is in no way such a tax upon thrift or industry as a like would be on a small fortune. No advantage comes either to the country as a whole or to the individuals inheriting the money by permitting the transmission in their entirety of the enormous fortunes which would be affected by such a tax; and as an incident to its function of revenue raising, such a tax would help to preserve a measurable equality of opportunity for the people of the generations growing to manhood. We have not the slightest sympathy with that socialistic idea which would try to put laziness, thriftlessness and inefficiency on a par with industry, thrift and efficiency; which would strive to break up not merely private property, but what is far more important, the home, the chief prop upon which our whole civilization stands. Such a theory, if ever adopted, would mean the ruin of the entire country — a ruin which would bear heaviest upon the weakest, upon those least able to shift for themselves. But proposals for legislation such as this herein advocated are directly opposed to this class of socialistic theories. Our aim is to recognize what Lincoln pointed out: The fact that there are some respects in which men are obviously not equal; but also to insist that there should be an equality of self-respect and of mutual respect, an equality of rights before the law, and at least an approximate equality in the conditions under which each man obtains the chance to show the stuff that is in him when compared to his fellows.
- Theodore Roosevelt, Seventh annual message to the US Senate and House of Representatives (3 December 1907)
- In recorded history, we’ve never even seen a family that’s lost their farm because of an estate tax. It just does not happen
- But that doesn’t hurt the imaginations of all these politicians who want to use the family farm as a straw man
- Steven Rosenthal, senior fellow at the Urban-Brookings Tax Policy Center "House Democrats’ plan drops repeal of a tax provision for inheritances" (September 14, 2021)
- If ... the tax scheme allows enormous intergenerational wealth transfers within families, some families will maintain considerable socioeconomic advantages over others, which allows them to provide better educations and better environments (both residential and familial) for their children, and their children's children. ... Even in a constitutional democracy in which each citizen has a publicly recognized claim to all the basic political and civil liberties, these socioeconomic inequalities would create an informal social hierarchy by birth: some would be born into great wealth and other social and political advantages while others would be born into poverty and its associated disadvantages. ... If, because a social scheme had the characteristics described above, the life prospects of some children were vastly inferior to those of others, it would be reasonable to regard these disadvantaged children as members of the lowest stratum in a descent-based social hierarchy. When such a hierarchy is, and has long been, marked by racial distinctions, equal citizenship, in any meaningful sense, does not obtain. In a society with an established democratic tradition, such a quasi-feudal order does not warrant the allegiance of its most disadvantaged members, especially when these persons are racially stigmatized. Indeed, the existence of such an order creates the suspicion that, despite the society's ostensible commitment to equal civil rights, white supremacy has simply taken a new form.
- Tommie Shelby, "Justice, Deviance, and the Dark Ghetto" Philosophy & Public Affairs, vol. 35, no. 2, pp. 126–160 (2007)
