Should I Talk About Trickle Down Economics? Or Maybe The Laffer Curve?

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9 Responses

  1. shawn says:

    I'm surprised you don't mention the recipient of such largesse — the sculptor– is John Seward Johnson, partial heir to the Johnson & Johnson fortune (whose father's will was drafted by Nina Zagat and then was furiously litigated as covered at length in the Aspen T&E text). Trickle-down indeed.

  2. mojo says:

    "Taxation is the art of plucking tail-feathers from a goose without getting bitten."

  3. Mike says:

    Being born into a rich family is proof that God wanted them to be rich. Why are you attempting to thwart God's will?

  4. Rich Rostrom says:

    Inherited money was earned by the original possessor, who paid taxes on the income. Why does the government have an additional claim on it because he died?

    If I earn $10 million, and pay taxes on it, I should be able to do whatever I want with what I have left: spend it myself, or give it to someone else to spend.

    Suppose I want to give $5 million to my child, so he can devote his life to some unremunerative field of science, or Torah studies, or marathon running, or elaborate formal gardens, or cheap vodka… what right does the state have to tax that transfer?

  5. Scott Jacobs says:

    Make it 7 million, and he could spring for stuff that doesn't double as paint thinner…

  6. Base of the Pillar says:

    Hey, Rich. How did the possessor get the money? Did it magically appear in his account? No, he probably got paid some-to-all of it. And the entity who paid him probably also got taxed on it. And the government, we as a society have agreed, has the right and obligation to tax that transfer. Your inheritor has just received wealth and I don't really see why that transfer is substantially different (tax-wise) than when the company paying the rich daddy got taxed.

  7. Chris says:

    At least generally, when you inherit assets, the cost basis for capital gains purposes is what they were worth when you inherited them. So there's quite possibly untaxed capital gains in estates.

  8. zarathud says:

    It's easier to tax the estate at a gross value than to try and calculate the taxable gain on inherited assets. 2010 is the second time we've dealt with deferred income tax on inherited assets and it was an enforcement disaster then, too.

    I'm sure you know that the Laffer Curve's validity has been questioned outside the politically-motivated economic circles where it originated. Then again, you were being educational, right?

  9. Base of the Pillar says:

    The validity of an economic theory has been questioned? Wow. That's news.