this post was submitted on 02 Sep 2023
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The solution is to heavily tax inheritance as studied by Thomas Piketty but this stricks such an intimate and instinctive chord (providing for your children) for most people that they are completely enable to think about it.
No, the solution is to abolish the system that enables and encourages such disparity and wealth hoarding in the first place, not put a band aid on the cancer that is capitalism.
I think most states have some form of inheritance or estate tax, so the foundation is already there. Picketty would argue for a much larger estate tax, I’m sure, but this is, as you allude to, politically untenable. However Texas has an excellent alternative: land value tax. So much wealth is tied up in property. This tax not only targets the wealthy, but disincentivises land banking and property as a primary investment mode. This keeps property prices and rents lower, which is a huge win for the poor in modern Western nations. It’s not a panacea, but I think it’s a viable and proven alternative.