Questions for conservatives

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It disincentivizes people to be successful.

That is a lie.

Reporter:  Hey Mr. Gates are you going to start Microsoft?

Bill Gates:  No.

Reporter:  Why not?

Bill Gates:  Estate Tax.

Reporter:  I don't get it.

Bill Gates:  (sighs)  If I start Microsoft and have to pay estate tax decades from now when I'm dead my heirs will only get $30 billion instead of $60 billion.  What kind of person would relegate their children to living on $30 billion?!  I simply can't do that to them.

Reporter:  But I thought you were going to give most of it away anyway?

Bill Gates:  That's irrelevant.

Reporter:  But if you don't start Microsoft your children will have to live on a lot less than $30 billion.

Bill Gates:  Again that is irrelevant.  You must be a dumb ass Democrat liberal that doesn't understand economics.

The End.

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It disincentivizes people to be successful.

That is a lie.

Reporter:  Hey Mr. Gates are you going to start Microsoft?

Bill Gates:  No.

Reporter:  Why not?

Bill Gates:  Estate Tax.

Reporter:  I don't get it.

Bill Gates:  (sighs)  If I start Microsoft and have to pay estate tax decades from now when I'm dead my heirs will only get $30 billion instead of $60 billion.  What kind of person would relegate their children to living on $30 billion?!  I simply can't do that to them.

Reporter:  But I thought you were going to give most of it away anyway?

Bill Gates:  That's irrelevant.

Reporter:  But if you don't start Microsoft your children will have to live on a lot less than $30 billion.

Bill Gates:  Again that is irrelevant. You must be a dumb ass Democrat liberal that doesn't understand economics.
The End.

I'm afraid this is too stupid to be worth my time in responding. I suggest you take a basic course in economics (or maybe just try thinking a little) and you might get how this actually works.

Like clockwork.

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I'm afraid this is too stupid to be worth my time in responding. I suggest you take a basic course in economics (or maybe just try thinking a little) and you might get how this actually works.

It's NOT stupid at all. It's an empirical issue, not a theoretical one, and the empirical evidence is still mixed, as far as I understand. Do people really care about their kids and, if they do, how much and in which sense is very much an open issue. I wouldn't make categorical statements either way.

You're instincts on this point are correct.  I'm not really sure how many small business owners Gustaf has spoken to but none of the successful ($1 million+ net worth, excluding home) business owners I talk to ever made an investment decision based upon estate taxes.  Most of the 1%ers that I know that are getting on in years are more concerned about whether they should sell the company or let someone in the family continue to run it.  Often they can't find any competent heirs to take over management.

Just throwing out statements like "it will disincentivise success" is just part of the old worn out right wing script.  It sounds good to the masses but to people that actually work in business and have done financial modeling for companies we know it's bunk.  No client ever said to me, "your model doesn't take into account estate taxes."  Are there certain niche situations where it may come into play?  Sure, maybe.  I've never seen it.  But to say some thirty something person with a million dollar idea is not going to execute it because 50 years from now they may have to pay estate tax when they are dead is total bologna and I'm glad you recognized it as such.

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Do liberals realize that all of one's estate has already been taxed...

So what?  When you go buy a candybar from the snack machine between classes you use money that has already been taxed.  It doesn't prevent the machine from charging you sales tax.  It's been taxed before and now it's time to be taxed again.  Think that's bad?  Then I suggest you don't go anywhere near a gas station or you will have a coronary.

By the way Politico learn some statistics.  You will be able to sleep better at night.  There is virtually zero chance under the current taxation regime that you or anyone you know will have to pay an estate tax.  So relax, put that out of your mind, and go write your governor an angry letter about the double taxation on your Baby Ruth.  Chances are though they aren't gonna give a rat's.

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It disincentivizes people to be successful.

That is a lie.

Reporter:  Hey Mr. Gates are you going to start Microsoft?

Bill Gates:  No.

Reporter:  Why not?

Bill Gates:  Estate Tax.

Reporter:  I don't get it.

Bill Gates:  (sighs)  If I start Microsoft and have to pay estate tax decades from now when I'm dead my heirs will only get $30 billion instead of $60 billion.  What kind of person would relegate their children to living on $30 billion?!  I simply can't do that to them.

Reporter:  But I thought you were going to give most of it away anyway?

Bill Gates:  That's irrelevant.

Reporter:  But if you don't start Microsoft your children will have to live on a lot less than $30 billion.

Bill Gates:  Again that is irrelevant. You must be a dumb ass Democrat liberal that doesn't understand economics.
The End.

I'm afraid this is too stupid to be worth my time in responding. I suggest you take a basic course in economics (or maybe just try thinking a little) and you might get how this actually works.

Like clockwork.

Yeah, I considered being cute about that, but, again, it didn't seem worth the effort. You seem to not really understand what I was saying, you see.

I think the problem is with the way you expressed yourself, not my comprehension.

It disincentivizes people to be successful.

I think if you made that statement to 100 people 99 would interpret it the way I did.

It disincentivizes people to be successful≠Sometimes in certain uncommon niche situations it may disincentives people but not to a degree that is germane to this conversation or economic policy.

There is a difference.

If you had said that the effect is unlikely to be very large I'd agree.

Unlike you that is exactly what I said...

Are there certain niche situations where it may come into play?  Sure, maybe.

But calling it a lie based on Bill Gates...well, that wasn't very convincing.

Unfortunately I have a limited writing staff so I could only put on a small play with a cast of two.  Some other characters that I considered budget permitting were...

Warren Buffet
Michael Bloomberg
Steve Jobs
Mark Zuckerberg
Micheal Dell
Michael Jordon
Tiger Woods

The list goes on.  I think you get the idea.  You are just going to have to trust me.  When Michael Jordon was practicing free throws in high school the vagaries of an oppressive estate tax were not on his mind.

At any rate if your position is that it is possible for an estate tax to discourage some kind of further risk taking when you are playing so far out on the curve already in certain isolated situations then sure I already stated I agreed with that before you wrote your rebuttal.