David Biesterfield has touched off quite a discussion by arguing for repeal of the inheritance tax. He claims it would be harmful by discouraging the creation of wealth. As he describes it, the current double taxation of inheritance saps the incentive of tomorrow’s wealth creators today. This third point especially hits multimillionaire business tycoons and entrepreneurs hard. As Biesterfield points out, people would be less likely to start up a business. This disinclination comes from their concern that taxes will come to very deeply impoverish them in death.
Biesterfield’s claims have been challenged from many corners. David Cosgrove takes on the idea of double taxation, boldly calling to task the assumption that it even makes sense in today’s wealth distribution. He highlights that many affluent individuals typically occupy senior roles in businesses and finance, rather than actively creating new industries.
“But wait a minute, if it’s really successful and worth, say, £200m when I die, my heirs will only inherit £120m because of inheritance tax. I’m not going to bother!” – David Cosgrove
Additionally, Pete Dorey challenges the notion that these large-scale tax cuts for the rich create wealth. He argues that such financial policies have failed to deliver on their promises of economic benefits trickling down to the broader populace. Dorey asserts that “hardworking people are the real wealth creators,” emphasizing that it is not merely the affluent who contribute to economic growth.
Licensing policy historian Stephen Dorril supports Dorey’s interpretation. As he notes, big tax cuts for the rich have persisted for most of those past 45 years. He points out that CEOs and bankers often receive exorbitant salaries and bonuses, raising questions about the equitable distribution of wealth within society. Dorril emerges as a severe critic of the privatization of public services. He contends that it commodifies transportation—that is, puts profit before public welfare—and doesn’t build the dynamic enterprise economy we need.
In contrast to Biesterfield’s opposition to a wealth tax, he maintains that encouraging wealth creation is crucial for sustaining better public services. He states, “better public services depend on the encouragement of wealth creation, not its disincentivisation,” indicating his belief in a model where economic growth is foundational to societal improvements.
The conversation about wealth creation and taxation remains dynamic as these commentators go back and forth, responding to and critiquing each other’s arguments. These discussions reveal an important divide in approaches to ensure our country’s economic growth continues. They challenge if current tax policies are aligned to support those goals.