Just last week I asked this beautifully thought-out question:
Why do Republicans fight so vigorously against the "death" tax? Being such noble believers of the bootstraps strategy, why would they insist on giving their children a handout?Today we see where the astonishing amount of inherited wealth comes from:
Roughly 40 percent of all household wealth stems from inheritances. This means that 40 percent of why some Americans are extraordinarily well off has nothing to do with smarts, hard work, frugality, lucky gambles or entrepreneurial ingenuity. It is simply because they were born to rich parents.
If an inheritance tax exempted the first $1 million received over one’s lifetime and applied the highest income and payroll tax rates to amounts above that threshold, it would raise $790 billion over the next decade. Under this type of plan, only 0.08 percent of households would owe the tax each year. The revenue could be used to invest in children who aren’t lucky enough to inherit millions, whether through universal pre-K, paid parental leave or a fully refundable child tax credit.
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