Re:Don't Lower Corporate Taxes, Abolish Them
by prostoalex on Sunday November 27, 2016 @12:21AM
(#13047863)
At micro-economic level this makes sense, at macro-economic level it reduces economic mobility. In countries with no artificial taxes on generational wealth the richest families of 2016 are likely to be largely the same as richest families of 1916 and richest families of 1816.
As their wealth is typically preserved via real estate and
land ownership, there's a politicial motive to decrease the cost of that, so economies also suffer from high barriers to entry and need to inflate taxes on something else to pay for the government services.
Repealing estate tax would work when combined with higher property tax rates or land value tax, but is rarely politically doable, as well-connected political families and large landowners tend to be the same families.
As their wealth is typically preserved via real estate and land ownership, there's a politicial motive to decrease the cost of that, so economies also suffer from high barriers to entry and need to inflate taxes on something else to pay for the government services.
Repealing estate tax would work when combined with higher property tax rates or land value tax, but is rarely politically doable, as well-connected political families and large landowners tend to be the same families.