Debating the Inheritance Tax
Death usually means some money for Uncle Sam and the rest for the real relatives (and unrelated heirs). As a result, when John D. Rockefeller died in 1937, his heirs received 30% of his fortune and the U.S. government got the rest. During March, 2010, however, Dan Duncan, the 74th richest man in the world died and his family inherited everything because the estate tax had lapsed for just one year.
Supporting an inheritance tax, Andrew Carnegie said, “I would as soon leave to my son a curse as the almighty dollar…” Bequeath great wealth to charity? “No,” because a disappointed family will probably contest the decision. Instead, according to Carnegie, a man of wealth should, …”set an example of modest…living…, provide moderately [for] those dependent upon him…” and then use the money for the good of the people. How? Invest in universities, free libraries, hospitals, parks, meeting halls, and church buildings. Saying that it created liars, Carnegie opposed an income tax.
Do you agree with Andrew Carnegie?
The Economic Lesson
In descending order, the individual income tax, the payroll tax (social security/Medicare), and the corporate income generate most of the U.S. government’s revenue. Typically, even though rates fluctuate with new legislation, still, revenue tends not to exceed 19% of GDP.