America is becoming a society governed by ghosts, a society where very rich people with no connection to the living world are “putting restrictions on our country’s wealth”.  How? Through so-called “dynasty trusts”. America has always set limits on what the wealthy can do with their wealth once they’ve died. They can erect monuments in their glory, or pass it all to their cat; but being dead themselves, they can’t do this in person. Instead, they rely on a trust set up when they were still alive to do it for them. It always used to be the case that such trusts were governed by a “rule against perpetuities”, limiting how long they could exist to 100 years or so. Since the 1990s, however, many US states have been chopping away at the “perpetuities rule” in a successful bid to get an estimated $100bn in additional trust business. In fact, 28 states now make it legal for trusts to live on almost indefinitely, thereby ensuring the houses, businesses, artworks and assets belonging to the rich are retained by their descendants in almost tax-free “dynasty trusts” for all time. In our new age of inequality, the top 10% now own 80% of the wealth. Looks like they’re going to keep it. (Mike Konczal, The Nation)

On a related issue it is amazing how many people hate the Inheritance Tax, whose purpose is to try and ensure that wealth is not held indefinitely by families who have done nothing for it. The idea of giving back to society for the benefits enjoyed over a lifetime seems to be an endangered concept. This bodes ill for society in general. Politicians and lawyers are pandering to the wealthy, who seem to be oblivious to the fact that, without general taxation, there would be no schools, roads, bridges, police, law courts, parks or even military, things that, without which, the wealthy couldn’t have made their money.   Some people still alive went to university at the expense of the taxpayer. That privilege is gone, but what a privilege!  I wish the current generation could do likewise.  Those of us who benefitted thus repay society  by paying their taxes; no fiddles or  accounts in Panama etc., and no avoidance of  inheritance tax, either. They owe it to their fellow citizens.

Social conscience, or Epicureanism in action.