Now that the Billionaire’s Union has convinced the country that there’s something unjust about the “death tax,” Democrats have to figure out what to do about it. It looks as if we’ve managed to beat back the latest assault, but there needs to be a long-term strategy, optimally one that fits in a six-second soundbite.
So here’s mine: Go ahead, abolish the estate tax. While you’re at it, abolish the gift tax as well.
Then tax money received as inheritance or gift, above relatively low individual annual and lifetime limits, as ordinary income. The soundbite version: “Why shouldn’t people who inherit money pay the same taxes as people who earn it?”