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Comment by joshuahedlund | Hacker News Reader

> Push the inheritance tax to 99%, and lower the income and business tax instead, to 1% if possible.

The wealthy would respond to such a system by giving all their stuff to their kids before they die. It always amuses me when people prescribe magical tax plans in a static world as if people won't change their behavior. Despite thousands of changes in tax law over decades, the maximum level of revenue the government has been able to extract from the population has remained remarkably constant[1]

[1]http://www.heritage.org/federalbudget/current-tax-receipts

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That's a very good remark - upvoted!

Some people will change their behavior and that's ok- because they'll be able to see with their own eyes, while they are still alive, the damage they'll do on their own family and maybe on society too.

That could induce other changes, such as them giving conferences to other people considering doing the same of the damages of 'unearned money'.

And even if only 1% could be shaved of the business and income tax, that'd be a move in the right direction - and sending a good message.

The idea is not so much increasing government revenue (I'd rather see it lowered to limit the waste) but reducing the damages caused by the whole idea of 'inheritance'.

Please everybody remember that inherited assets are not all money. Some things have sentimental value, like the home you grew up in or 100 year old furniture made by a great-great grandpa. Those things should stay in a family and not be ripped away by the government.

Of course, as people have already pointed out they can just be given away before death. As long as it's not a sudden, unexpected death.

One of the rarely addressed big problems with inheritance tax is that it frequently forces the liquidation of small businesses that are otherwise going concerns in order to pay the tax bill.

People are already taking advantage of the fact that the current estate-tax-and-gift-tax lifetime exemption is $5.12MM per individual and $10.24MM per couple, since this limit will expire at the end of the year and be reduced substantially.

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