“Death taxes are not only a punitive tax on capital, but they also discourage investors, entrepreneurs, and other high-income people from earning income once they have accumulated a certain level of savings.”
Whenever I debate my left-wing friends on tax policy, they routinely assert that taxes don’t matter.
- They argue that we don’t have to worry about the Laffer Curve because high tax rates don’t discourage taxable income.
- They argue that we don’t have to worry about double taxation because high tax rates don’t discourage saving and investment.
- They argue that we don’t need fundamental tax reform because tax burdens don’t have much impact on economic performance.
- They argue that we don’t have to worry about punitive marginal tax rates because such policies don’t discourage work.
It’s unclear, though, whether they really believe their own rhetoric.
And why are they so anxious to defend loopholes such as the deduction for state and local…
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