Any ”rising of inequality” is a direct achievement of statist, socialist government.
Only an economic moron, would argue that tax free inheritance is an evil, thereby solidifying the fear to save and invest. every dollar/Euro taken from the private sector and redistributed by temporary politicians (many of whom are involved in cronyism) is money removed from building the economy.
“If we all do that at the end of the day it’s a zero-sum game, actually it’s a negative sum game. Given that we have to pay for our social model, our schools and hospitals, if we entirely stop taxing inherited wealth, corporate taxes, this is one of the reasons we’ll have very high tax rates on labour income and on wages,” he added.
Best-selling economist Thomas Piketty: “Time to start worrying about inequality”
French economist Thomas Piketty calls on countries like Finland to take action before inequality becomes rampant. Speaking during a visit to Helsinki this week, the author of the runaway best seller “Capital in the Twenty-First Century” said policy makers need to find a balance between taxing labour income and taxing wealth.
French economist Thomas Piketty’s latest work on wealth and income inequality looks at wealth accumulation and distribution over more than 200 years. Many assume that the findings of growing wealth inequality has no bearing on the socially equitable Nordic states. That’s not so, said Piketty during a visit to Helsinki this week.
“These days in most countries, including in Finland, if you make 100,000 euros through your labour income you’re going to pay a lot more tax than if you received 100,000 euros through a gift or through an inheritance,” Piketty commented.
“Maybe this is puzzling because we are attached … to some kind of meritocratic ideal and would like people to accumulate wealth out of their labour income. So we have to find some kind of balance in how we tax labour income and how we tax inheritance,” he added.
Piketty said recent calls to abolish inheritance taxes would be a mistake. He noted that there is a similar temptation — especially in small countries — to slash corporate taxes in an effort to keep wealth and attract multinational profits. This, he said would mean that labour and wages would have to bear a heavier burden for bankrolling the welfare state.