A world leader in philanthropy (and father of the planet’s wealthiest man) and an expert on U.S. economic inequality (and heir of Oscar Mayer) on the “billionaire backlash”

The “Man Bites Dog” story of over 1,000 highnet- worth individuals who rose up to protest the repeal of the estate tax made headlines everywhere last year. Central to the organization of what Newsweek tagged the “billionaire backlash” were two visionaries: Bill Gates, Sr., cochair of the Bill and Melinda Gates Foundation, the largest foundation on earth, and Chuck Collins, cofounder of United for a Fair Economy and Responsible Wealth, and the great-grandson of meat packer Oscar Mayer who gave away his substantial inheritance at the age of twenty-six.

Gates and Collins argue that individual wealth is a product not only of hard work and smart choices but of the society that provides the fertile soil for success. They don’t subscribe to the “Great Man” theory of wealth creation but contend that society’s investments, such as economic development, education, health care, and property rights protection, all contribute to any individual’s good fortune. With the repeal proposed by the Bush administration, we might be facing the future that Teddy Roosevelt feared—where huge fortunes amassed and untaxed would evolve into a dangerous and permanent aristocracy. Repeal would drop federal revenues $294 billion in the first 10 years; 27 some $750 billion would be lost in the second decade, not to mention that the U.S. Treasury estimates that charitable contributions would drop by $6 billion a year.

But what about all those modest families that would lose the farm? Gates and Collins expose the fallacy of this argument, pointing out that this is largely a myth and that the very same lobbies and politicians who are crying “cows” have opposed other legislation that would actually have helped small farmers. Weaving in personal narratives, history, and plenty of solid economic sense, Gates and Collins make a sound and compelling case for tax reform, not repeal.

Includes bibliographical references (p. 164-165).

William H. Gates is world leader in philanthropy (and father of the planet's wealthiest man) and an expert on U.S. economic inequality (and heir of Oscar Mayer) on the "billionaire backlash"

Contents

Foreword

Introduction

Chapter One: What Kind of Nation Do We Want to Be?

Revenue Loss and the Tax Burden Shift The Impact on State Treasuries The Estate Tax and Inequality The Dangers of Inequality Today Concentrated Wealth and Democracy Concentrated Wealth and Equality of Opportunity Growing Inequality Is Bad Economic Policy Inequality and Our Civic and Public Health Does the Estate Tax Have an Impact?

Chapter Two: The Origins of America’s Estate Tax

American Values: The Roots of the Estate Tax The Gilded Age and Movement for an Estate Tax Early Estate Taxation Supporters of the Estate Tax The Establishment of the Estate Tax

Chapter Three: Opposition to the Estate Tax

The Effort to Repeal the Estate Tax Inside the D.C. Beltway "Death Tax": What’s in a Name?

Orange County, California Seattle, Washington Hiding the Real Face of Estate Taxpayers The Estate Tax Down on the Farm The Estate Tax and Family-Owned Enterprises The Case for Repeal: Unsound and Misleading Arguments Is the Estate Tax Unfair Because Death Should Not Be a Taxable Event? Is the Estate Tax Unfair Because It Punishes Successful People Why Penalize People Who Leave Their Hard-Earned Savings and Wealth to Their Children? Is the Estate Tax a Form of Double Taxation? Does the Estate Tax Penalize the Little Guys? Does the Estate Tax Raise Enough Revenue to Cover the Cost of Collecting It? Is the Top Rate of the Estate Tax Too High? How Much Does the Estate Tax Really Raise?

Chapter Four: The Showdown

Budget Framework Fiscal Responsibility and the Rising Costs of Estate Tax Repeal Organizing to Oppose Complete Repeal The Estate Tax: A Summary of Changes

Chapter Five: What We Owe Our Society

A Religious Perspective on Wealth and Society What Is It Worth to Be an American? The Estate Tax and Charitable Giving A New Spirit of Giving? What about the Children? The Dangers of the Silver Spoon

Epilogue: The Estate Tax and the Common Good

Notes

Bibliography

Acknowledgments