Seems like a bucky fuller thing but I can’t remember. I’m talking about the idea that when you die you should not be able to give millions to your friends or family. It should mostly go back to the government and the society from whence it came. This way kids of rich folks won’t live off mommy’s or daddy’s cash. Everyone has to make it on their own.
Where did this idea originate from? You’re welcome to throw in opinion but I’m not trying to start some big debate.
Cheers,
PanOpticon
You’re confusing Buckminster Fuller with Warren Buffett, who certainly embraces the idea but I don’t know if he originated it.
To back it up a step, who came up with the idea of estate tax, period? Why should a large portion of your family’s possessions suddenly go to the govt. when you die?
Andrew Carnegie’s personal philosophy was to leave just enough money to your heirs so that they can survive, but will be forced to work for a living. That’s probably what you’re thinking of. I’ll dig around for a quote, but I know that it’s somewhere in Robert Bremner’s American Philanthropy.
Andrew Carnegie’s Gospel of Wealth is what I was thinking of. The ninth paragraph beginning “There are but three modes in which surplus wealth can be disposed of” is probably where to look for what you’re seeking.
The philosophical origin of the estate tax is the belief that earned income should be taxed at a lower rate than non-earned income (e.g., inherited money). Earned income contributes production to society; non-earned income does not.
I reject the premise of your question. No one of whom I’m aware believes that “when you die you should not be able to give millions to your friends or family.” You can leave whatever you want to your friends and family, your estate just has to pay the taxes on it prior to distribution. Currently estates valued at one million dollars or less are exempt from the estate tax. This figure will increase gradually through 2010, at which time estates valued at 3.5 million or less will be exempt. In 2011 the exemptions will return to IIRC either $600,000 or $650,000.
Contrary to popular belief and the rhetoric of those who favor permanent repeal, there has never been a single documented case of a family farm being lost to the government to cover the estate taxes. There is a different standard regarding family farms and estate taxes. The land can be valued below fair market value for purposes of the tax, taxes can be deferred for up to 14 years and the exemptions are larger.
Otto, I think the only flaw is in the “not be able to” portion. Carnegie didn’t propose legislation to institute his idea, nor did he suggest that that distribution should be a governmental affair. I think that’s what the OP was aiming at (but could be wrong).