UK Tax Plan Unworkable, Illustrates that Taxation is Theft

There’s a growing movement in the United Kingdom calling for a 100% inheritance tax, under the claim that the heirs did nothing to accumulate the wealth, and the government would put it to better use.

But in truth, this would ultimately be bad for society and prove once again that government is a poor steward of public funds.

And in the end, taxpayers aren't stupid — they would find a way to work around the tax.

Lewis Goodall is the latest British journalist to promote this scheme, telling viewers during a TV newscast last Thursday that "You don't have a right to inherit money from mummy and daddy that you did nothing to earn."

He explained that the current marginal inheritance tax rate creates what he calls an "aristocracy of wealth," and that it would be far better to incentivize work by lowering income tax rates and replace that revenue with a 100% inheritance tax.

Goodall isn’t the first British journalist to endorse a 100% inheritance tax.

Last month Abi Wilkinson asked in a Guardian column, "Why not fund the welfare state with a 100% inheritance tax?"

Why not? Here's why not.

First of all, taxing an inheritance at any rate is arguably immoral. The funds were set aside from money that had already been taxed, and any income or capital gains that the funds later generated was also taxed. Now they want to tax the whole shebang?

Second, setting aside property for future generations has biblical roots. Proverbs 13:22 states, "A good person leaves an inheritance for their children's children, but a sinner's wealth is stored up for the righteous."

Third, a 100% inheritance tax would change the very fabric of business and commercial life in the United States. Within one generation every family farm, every corner mom and pop store, every local machine shop would either disappear or be gobbled up by large corporate interests.

Instead of doing business with Stelter Blueberries, Jollay Orchards, or Farmer Friday, we'd be dealing with Cargill, Tyson Foods, or Monsanto Corporation — or more accurately, with their legal department.

Is that what we really want?

Fourth, Americans aren't stupid — we didn't get to the top of the global food chain by being idiots. Any American worth his salt can figure out a way to get around the inheritance tax, by setting up joint accounts, or selling property to our heirs for a dollar to mention a few.

Finally, government has repeatedly lied to us before. How many times have we heard promises like these?:

• If we just permit Sunday liquor sales and increase the tax on spirits, we can lower personal income tax rates.
• If we can just have a state lottery, we can make enough money to pay for public education and take the burden off the homeowner.
• If we just legalize marijuana, we could take in enough in taxes to cover the cost of welfare.
• If we can just increase the gas tax all the potholes will be filled.

Then we go to the polls, vote "yes" on the issue, and the issue passes — but nothing changes in the end. Taxes aren't reduced, highways are still in disrepair, and we're still on the hook for public education and welfare.

And income tax rates often actually increase.

Given past promises, can we really believe politicians would reduce our personal income taxes if we bequeath everything we own to Uncle Sam?

Meanwhile we're dealing with the problems that come with legalized pot and gambling addictions.

We didn't always have a federal income tax.

Although we dabbled with one in 1861 to fund the Civil War, it was repealed 11 years later.

The modern income tax system wasn't established until 1913, with the ratification of the 16th Amendment, which permitted Congress to levy taxes on income without regard to apportionment among the states.

In the 112 years since then, we learned one thing: No matter how much money we send to the IRS, it's never enough, and politicians will lie, cheat, and steal in order to get more.

There's nothing voluntary about paying taxes — taxation is theft, and we need to jealously hold on to every cent we have.

If we don't, we‘ll end up being another socialist paradise like Venezuela, where, to paraphrase Ronald Reagan, we'll spend our sunset years telling our children and grandchildren what life was like in America when men were free.

Michael Dorstewitz is a retired lawyer and is a frequent contributor to Newsmax. He's also a former U.S. Merchant Marine officer and a Second Amendment supporter. Read Michael Dorstewitz's Reports — More Here.