Reply to Comments on Billionaires--Posner

There were a number of interesting comments. I cannot reply to all of them, but I will reply to a few. One comment was that "wealthy private donors often take an interest in the results they are purchasing with their donations. Few would argue that government is equally demanding with its funds. Thus, an increase in government spending to replace charitable donations seems counter productive." I do not agree. The reason is that charitable foundations are perpetual, and are controlled by self-perpetuating boards of trustees. As a result, the original donors do not control a foundation. There is thus less monitoring of foundations than there is of government programs. Another comment questions how eliminating charitable deductions from the estate tax would generate much tax revenue. "People will simply give whatever money they had otherwise intended to charity while they are still alive, noting they don't need tax deductions to do so." This might be largely true if there were no gift tax (it would not be completely true because, not knowing when they die or what their future expenses will be, people are reluctant to give away almost all their money before they die). There is and must be a gift tax to back up the estate tax. The same commenter said that I am "radically underestimating the incentive effects of giving to one's offspring. Assume you can close all the 'loopholes' permanently and it is impossible to give one's wealth to one’s children (what a hideous thought) after death or while alive, then I assure you an awful lot of our most prolific job creators would either retire or stop being workaholics and instead take time out to smell the roses." This comment conflates closing loopholes with confiscatory tax rates. Even if there were no deductions, an estate tax of less than 100 percent would allow people who accumulated an estate to pass some of the money in the estate to their children or others, including charities. Another commenter makes the following good point in defense of the estate tax: "Most of the wealth of these billionaires is not from income and has not been taxed, e.g. Balmer has not sold and rebought his Microsoft stock on which to pay capital gains, but has held it and his wealth is from appreciation that has not been taxed. So the estate taxes, for the most part, are taxes on money as it passed to heirs that has not yet been taxed.” When the heirs sell the stock, moreover, they pay income tax only on the difference between the value of the stock at the time of the donor's death and its current value, so that the appreciation in stock value during the donor's life is never taxed. Finally, one unrelated and very strange comment: "I take great offense at your recent statements that all Muslims in America should be under surveillance." Neither recently nor ever have I made such a suggestion.

Comments

[Anonymous]

ÿ¥ÿßÿ™ ÿØŸÑÿπ

شات الود

[Anonymous]

Incredible site!

[Anonymous]

Great. Now i can say thank you!

[Anonymous]

tiffany jewellery
ed hardy

[Anonymous]

links of london
abercrombie and fitch

[Anonymous]

It is the coolest site, keep so!

[Anonymous]

It is the coolest site, keep so!

[Anonymous]

Very interesting site. Hope it will always be alive!

[Anonymous]

Perfect site, i like it!

[Anonymous]

I want to say - thank you for this!

[Anonymous]

If you have to do it, you might as well do it right.

[Anonymous]

Perfect work!

[Anonymous]

Beautiful site!

[Anonymous]

Incredible site!

[Anonymous]

Great. Now i can say thank you!

[Anonymous]

very thanks for article!

[Anonymous]

Provides the best tiffany jewellery, including Necklaces, Pendants, Bracelets, Earrings, Ringsat the lowest prices.Tiffany jewellery is the best online United Kingdom jewelry stores where you can buy the cheapest Tiffany & Co silver Our huge selection of
tiffany jewelry

[Anonymous]

good post,I think so!Abercrombie & Fitch on Sale, Hoodies, Jeans, T-Shirts, Pants, Polos abercrombie and fitch abercrombie and fitch cheap abercrombie fitch Abercrombie Men Tee abercrombie womens polos Abercrombie & Fitch Men, women, and children's clothing and accessories edhardylife a famous ed hardy store which sell directly ed hardy clothing, shoes, boots, swim suit and other cheap ed hardy ed hardy cheap Ed Hardy ed hardy clothing,Providing authentic Ed Hardy Clothing with competitive price and fast,secure delivery.The famous brand by Don Ed Hardy 's Vintage Ed Hardy

[Anonymous]

Thanks very much for the compilation!links london
tiffany jewellery

[Anonymous]

Great. Now i can say thank you!

[Anonymous]

Great work, webmaster, nice design!

[Anonymous]

Great site. Keep doing.

[Anonymous]

Great site. Keep doing.

[Anonymous]

It is the coolest site, keep so!

[Anonymous]

I bookmarked this link. Thank you for good job!