We have good news for Scott Kirby, the United Airlines CEO
Wealth inequality has become a danger to our society, and we need to address that.
We should have a national wealth tax — it won’t work by state because people will just move. And I think we should have inheritance taxes that get close to 100 percent at some level. I would pay them.
The first piece of good news is that the numbers on wealth inequality are grossly misleading - we would say deliberately. For they do not include any - really, any - of the things government already does to reduce wealth inequality. Not even Social Security - the American equivalent of the state pension - is included, not even in calculations of pensions inequality. This is Worstall’s Fallacy, demanding what must be done without accounting for what is already done. Tsk.
The second is that Mr Kirby cannot, by definition, pay inheritance taxation upon his own assets.
The third is that if he does desire to make sure his children - or others - do not inherit there is already a method he can use. The Gifts to the United States Account. Been there since 1843, anyone can just send in money to the Feds. They even take PayPal. So, that’s done then. And yes, they will indeed accept an estate, it is not necessary to pay now.
The thing is, that account gets a handful of millions of dollars each year. Therefore there are some hundreds of millions - we’d say about 342.9 million, minus half a dozen people - who do not want to send extra money to the Feds and definitely don’t want 100% inheritance taxes. We also suggest that in a democracy the desires of the people should indeed carry some weight - we’ve been told that’s what the demos part is all about.
But that option is there and Mr. Kirby is wholly at liberty to spend his money as he wishes. We are, after all, the liberals around here.
Tim Worstall