This will be a short diary. I have been thinking about the estate tax after filling out my interactive NY Times budget, and choosing "1 million" (the lowest option available) as the floor for imposition of estate taxes. I find it interesting that in discussions of the estate tax, very few people talk about graduating increases in estate taxes in a way that is similar to the gradual increases in the amounts that incomes are taxed. And I wonder, "why don't we do that?" Why isn't the second $1 million (above the initial, tax-free $1 million) taxed at 25% (currently 0%, will reset to 55% next year), and the next $4 million taxed at 55%, and the next $8 million taxed at 65% and the next infinite million taxed at 75%? It would take awhile, but that is the surest way to redistribute the wealth that has been concentrated at the top of the (very pointy) pyramid. And who can most afford to pay taxes? That's right! Rich dead people.
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