Around 60% of America’s wealth is now inherited. Many of today’s super-rich have never done a day’s work in their lives.
Trump’s response has been to cut the estate tax to apply only to estates valued at over $22m per couple. Mitch McConnell is now proposing that the estate tax be repealed altogether.
What about the capitalist principles that people earn what they’re worth in the market, and that economic gains should go to those who deserve them?
America is on the cusp of the largest inter-generational wealth transfer in history. As rich boomers expire over the next three decades, an estimated $30tn will go to their children.
Those children will be able to live off of the income these assets generate, and then leave the bulk of them to their own heirs, tax-free. (Capital gains taxes don’t apply to the soaring values of stocks, bonds, mansions and other assets of wealthy people who die before they’re sold.)
After a few generations of this, almost all of the nation’s wealth will be in the hands of a few thousand non-working families. To the conservative mind, the specter of socialism conjures up a society in which no one is held accountable, and no one has to work for what they receive. Yet that’s exactly the society Trump and the Republicans are promoting for the rich.
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