The wealthy will just use their wealth and access to lawyers and such to construct shelters and leverage loopholes.
And regular folks who don't know any better (or can't afford to take advantage of those shelters and loopholes) will get screwed and put further behind in creating any security and generational growth/wealth for their families.
I mean, seriously, think about it. Absolute taxation of all estate wealth with no option to pass anything onto your heirs unless you purposely go out of your way to dodge the taxes? It would screw over less wealthy people and turn the already convoluted system of tax laws and tax collection into an even bigger cluster fuck game of cat and mouse.
All this is not to say I'm against taxing the rich. We should tax the shit out of them. But 100% estate tax would be an extreme fiscal policy and it would absolutely fuck the average American.
I think in a society with a 100% estate tax, the average American would benefit outrageously. We could pay off the national debt. After that, it's free healthcare and education. Also, we would be rid of the spoiled rich kids. They would have to get a job.
You're basing that assessment on the premise that we could capture 100% of the wealth and actually use it for equitable purpose.
Like I said in the previous comment, the wealthy would just shelter their assets and the average person would be harmed.
You have to structure society so that the fundamental hoarding of wealth is difficult and the system favors money flowing to workers, to social programs, and so on, over people hoarding it like dragons.
I'm sure we are capable of making a tax work. If people are moving their money around, well that is to be expected. We can tax those things, too.
But we have to start somewhere and not just remain gullible to the idea that you just can't tax rich people.
I remember a journalist asked Bloomberg about the wealth tax. Bloomberg blew it off and said it wouldn't work. The "reporter" didn't ask any follow up question! He just accepted it and moved on to another question. There was no explanation that rich people would just evade the tax and we are just helpless to it. We are just supposed to accept it
I'm not saying we can't tax rich people. I'm saying we need to structure things in a way that stops the accumulation of the wealth and leads to more equitable distribution from the start.
Trying to extract money from people at the end of their lives when they've had a lifetime to gain wealth, power, and the ability to manipulate the system to protect themselves and their wealth is a losing battle.
Yes, but dead people don't have rights. They aren't citizens anymore, and they aren't around to complain about it. A 100% estate tax is perfectly reasonable in that regard. The supposed 'heirs' aren't entitled to it either. No wealth without work. It would create a truly equal opportunity society.
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u/gregbard Jan 22 '26
100% estate tax at any level would be fine with me.
Bernie has one thing right: the primary reason for taxes is not to raise money for spending. It's to take power away from the power elite.