I am not in the habit of lobbying politicians, but have done so once in England and once in the United Sttates. The issue in Washington was the proposed gutting of Inheritance Tax. I happen to strongly support the Inheritance Tax, and at the time it was a hot button issue in Washington D.C. under a Republican President.
I joined quite a large number of interested people at the Capitol and we broke up into small groups to visit the offices of, mainly, Blue Dog Democrats, those who represented conservative constituencies but called themselves Democrats. You can’t expect to see the actual Member – Congressional aides handle all these representations – unless you are a trade association or, presumably, a big donor. Each of us had our say, and I had what I hoped was a bit of an unusual short speech ready for them with my English accent. It went like this:
“In 1776 you guys rebelled against good King George III. You rejected his system of rule, his taxation policies, the British class system and the lack of opportunity for enterprising young people. You fought for (more) democracy and the right of every generation to make the best of itself. You are now proposing to make the Inheritance Tax meaningless. What does this do? It passes wealth unencumbered to the next generation, regardless of whether that generation is capable, or whether it is gormless and spendthift. It re-installs in America the very self-perpetuating “aristocracy” that you rejected in 1776. Each generation should prosper or not depending on its own merits, not on Dad’s cash.
Aside from that, no one makes a fortune divorced from the advantages of living in a well- organised society. The rich benefit from the schools, health systems, policing, roads, laws, regulations and rules that offer a level playing field and minimal cheating. This has been created by generation of taxpayers like you and me. Without the institutions of an advanced economy you have only tribalism and bribery to help you get ahead. We should thank our sophisticated community when we die – and help repay the debt we owe it.”
Alas, the Inheritance Tax is now at a level in America where it affects only a tiny proportion of the population and is fairly derisory. Even so, it is perennially under attack by the short-sighted and selfish. Tomorrow I will return to this issue, which seems arcane, but is actually enormously important in the cause of equal opportunity, which os an Epicurean principle.
You may be surprised to know that a considerable number of very rich people (i suspect of the better educated variety) also support the Inheritance Tax, and are vocal about it. But they are drowned out by those whose thinking gets no further than “I did it all myself. it’s mine to dispose of”. Of course they never did do it all by themselves . Theeir interest in community is weak and they are in the majority.
Inheritance tax is one of the most progressive taxes around. It impoverishes no one, while potentially raising considerable sums of money. The more I think about the more the third demand of the Communist Manifesto, ‘abolition of the rights of inheritance’, makes sense. It would massively reduce income inequality, improve public services through the revenue raised, and improve social mobility by ensuring that the offspring of the wealthy do not have such a big advantage. Although I wouldn’t go as far as Marx, particularly with poorer households, there is no reason not to impose massive taxes on the inheritances of the wealthy.
This is the rock-core-central historical truth, as you noted:
“No one makes a fortune divorced from the advantages of living in a well- organised society.”