"History suggests that, all other things being equal, a society prospers in proportion to its ability to prevent parents from influencing their children's success directly."
Can we assume that pg is in favor of restoring the estate tax?
Can we assume that pg is in favor of restoring the estate tax?
Can we see some evidence that the estate tax in the US ever had the characteristics cited by its proponents?
Consider, for example, the possibility that Caroline Kennedy will be appointed to the Senate by the NY Governor who just happens to come from a line of NY politicians. This isn't an isolated case - a huge fraction of current US senators are related to past senators and governors. (Biden's successor, one of his advisors, is seat-warming until his son is ready to run.) The House of Representatives isn't much different. The same thing happens at the state level - IL is mainstream in this.
The estate tax also doesn't hit the rich. The wealth of Gates et al will not be subject to the estate tax. It will, however, work to the benefit of their kids. (The Fords, Rockefellers, and GM heirs worked the same game.)
The only folks who pay estate tax are medium size family-owned biz. Many of them have to sell to pay the tax bill.
Interestingly enough, Buffet makes a lot of money buying such biz. He also makes a lot of money selling insurance to their founders to pay estate taxes.
That's why it's dangerous :)
Buffet has it right: leave them enough so that they can do anything, but not enough so that they can do nothing.
I.e. Paris Hilton has the money that she uses for hedonistic purposes, but she won't be put into a position of power.
In formulating my reply, I think I came around to the other point of view. Bad things can happen, but inherited money is probably a minor enabler in this, and just the opposite can happen as well (inherited money can do much good).