Martin Feldstein writes in the WSJ today, supporting Romney's tax plan, and as Mitt's advice guy on economics, his comment on the estate tax repeal proposal is very revealing:
"What of the estate tax? Eliminating it would cost $21 billion of revenue in 2009 terms, an amount easily offset by other base-broadening changes. More importantly, eliminating the estate tax could be a revenue gainer in the longer term. That's because its current high rates induce high-wealth individuals to bequeath most of their money to foundations, universities and other tax-exempt institutions where the future investment earnings are untaxed. If the estate tax were abolished, more of those funds would go to children and grandchildren, who in turn would generate higher income taxes for generations."
After decades of hearing about GOP charity works - not government, Martin "Trickle Down" lets the cat out of the bag. It's really all about greed for the rich and their families - not creating jobs, endowing colleges, giving to churches and synagogues.
As for paying taxes on the inheritances, you don't pay capital gains until realized, dividends until received.
What a minute. Mitt and Martin also want to eliminate all dividend and capital gains taxes, So, what vapor is the economic genius Feldstein selling? No taxes on estates and no taxes on investments and no donations to charity?