The Inheritance Tax: As American as Apple Pie

Following the midterm elections of 2002, Republicans have been downright gleeful over the prospect of putting into effect their vision of America. One of the widest planks of the Republican platform has long been the reduction in almost all taxes, and the total abolition of the Estate Tax. GOP strategists nicknamed the estate tax the “Death Tax”, an oversimplification that suits their purpose in steering the limited thinking and short attention spans of the average listener. Proponents of an estate tax repeal base their argument almost wholly on the slogan-like idea that the inheritance tax is a form of double taxation. Opponents of the tax love to look into the faces of listeners and say “you’re being taxed twice on the same money!” This argument is false on its face. The individual who earns wealth is taxed as the money is attained, then the inheritor, a completely different person who has not earned any of the money but is simply being given this fortune, is taxed upon receipt of the wealth. Each person is taxed on their income, earned or inherited. Though the money is being taxed twice, it is misleading to suggest that it is being taxed twice while in the hands of a single person (the “you” in their argument falsely intimates that one person sees this tax burden twice)

The idea of a family dynasty, sitting atop a fortune, passing it down through generations, is anathema to the vision our founding fathers put forth during the formation of our republic. Americans reject the idea of a landed aristocracy, hoarding the nation’s resources and hanging on to vast fortunes in perpetuity. We are a nation built upon the idea of earning one’s own fortune. The self-made man is hero in our culture, a culture where the “poor little rich boy” is disdained by the self-styled hard working masses who strive day in and day out to provide for themselves and their families. Our nation is also home to the most entrepreneurial people in the world. With a plethora of ideas, backed by hard work and sacrifice, many Americans have risen from obscure backgrounds to financial greatness.