Quote Originally Posted by DuncanONeil View Post
I think from a societal perspective such a massive accumulation of wealth in the hands of so few is very bad. For instance, it has been shown to radically increase crime and cause other problems.



When taxes are decrease how is that you see this only as taxes decreased for the "rich" at the "expense" of the "poor & middle class"?



Show me a time when taxes were cut for the "rich" and raised on the minimum wage earner?



Inheritance comes from three sources; wages, investment, or prior inheritance. In all of these instances these funds have already been taxed. Why then should it be taxed again?? In many cases there is a family business involved that suddenly becomes the property of someone else!


Lastly, why have we chosen to tax investment income at a lesser rate than income earned through labor. A long line of those who are claimed to be champions of conservative economics was strongly opposed to this, the likes of which include Adam Smith and Andrew Mellon. The liberal economists have always been against it. Warren Buffet ripped the US government because he paid a lower % on his income than his secretary did, despite earning way more, because investment income is taxed so lightly.
[/QUOTE]

Because historically what has been done with tax decreases for the top brackets is adjusting the lower brackets upwards to keep government revenues high. Thus those who have $0 in income that is in the top bracket but have income in lower brackets are taxed at higher rates than they were before.

Time when taxes were cut for the rich and raised for a minimum wage earner include 1988 When the taxes on the bottom bracket were raised from 11% to 15% to pay for a cut on the top bracket from 38.5% to 28%.

The net result was:

In 1971: Bottom bracket 14% Top Bracket: 70%
In 1990: Bottom Bracket 15% Top Bracket: 28%

I don't have easily available data on the 2nd and 3rd lowest brackets but suspect the trend is similar. The primary reason tax revenues equal out when the top bracket is lowered is that other brackets are raised.

My point about inheritance being unearned wealth, is that it is money that you get because you happen to be related to someone who did well, and is completely independent of your own abilities, successes or failures. If you want a meritocratic system taxing inheritances heavily seems to be a good start.