Why I Think Inheritance Taxes Are Good

The only way to prevent money (=power) from accumulating in the hands of a family, especially a family member who has neither motivation or brains to earn it him/herself, is to impose a confiscatory inheritance tax. The children of a brilliant entrepreneur should have no right to money they have not earned. Do we need more Paris Hiltons?

There are huge problems with doing so, of course. What to do with the money collected is important. It is also important to prevent a profitable company from being forced out of business. People think it is important to be able to provide for their offspring, though this issue is a cultural one rather than a real issue. There is no real reason why adult, competent and educated adults should be "provided for" by wealthy parents. Nonetheless, many parents are strongly (and wrongly) motivated to dd this and will undoubtedly attempt to find clever ways to circumvent any attempt to bring their children "down" to the normal level.

In an egalitarian society, every child shoud have the same opportunities. No society in which parents raise their own children can be truly egalitarian. Wealthy families have richer cultural opportunities. So, while it isn't really possible to start all children off with the same advantages, they can certainly be "evened out" to a great degree. For instance, money collected from taxing inheritances can be earmarked to provide nearly equal educational rights to all. Scholarships can be awarded to children who show intellectual promise and who are economically disadvantaged. Money can be spent to raise the standards of "ghetto" schools. Just because such a system can't be made trick-proof doesn't mean it can't be made to improve the educational system.

The intent is obviously two-fold. It is desirable to prevent families from accuring such wealth that they become oligarchs, potentates of small or large empires. It is desirable to assure that children have a more equal chance at higher levels of education. Such a system may not be perfect, but it can be "good enough" to be a benefit.