Not the same.Reader comment on: David Koch on Taxes and Ballet Submitted by ben (United States), May 17, 2010 12:55 The calculation a person makes upon death is different than during life. During life, every dollar that goes to taxes is one less dollar that the person can save, spend, or give away. In death, every dollar that goes towards taxes is one less dollar to give away (to charity or heirs)- when you're dead you can't save or spend. This crucial difference is why the estate tax and income tax will operate differently. Raise the income tax and people begin to worry they may not have enough (or as much) as they want to spend on things, or save for retirement. When dead, these worries disappear, all that matters is their legacy to their heirs and society. A higher estate tax makes people more likely to give to charity instead of heirs. A high income tax makes people more likely to save instead of giving money to charity because of worries that they will not have as much as they would like for an uncertain future. Note: Comments are moderated by the editor and are subject to editing. The Future of Capitalism replies: It doesn't make sense to me to talk about a calculation a person makes upon death. The person isn't calculating at that point, he's dead or dying. I don't think there is as much of a clear distinction as you say, because the estate planning is done, after all, by people who are alive. Submit a comment on this article Other reader comments on this item
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