Want To Know Why A Wealth Tax Won t Work? Remember The Time Michael Jackson s Estate Landed In Tax Court forbes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from forbes.com Daily Mail and Mail on Sunday newspapers.
A Practical Reason To Oppose Wealth Taxation
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As an economist, I strongly oppose the wealth tax (as well as other forms of double taxation) because it’s foolish to impose additional layers of tax that penalize saving and investment.
Especially since there’s such a strong relationship between investment and worker compensation.
The politicians may tell us they’re going to “soak the rich,” but the rest of us wind up getting wet.
That being said, there are also administrative reasons why wealth taxation is a fool’s game. One of them, which I mentioned as part of a recent tax debate, is the immense headache of trying to measure wealth every single year.
Michael Jacksonâs Estate Is Winner in Tax Judgeâs Ruling
The decision on the value of Mr. Jacksonâs name and likeness will significantly lower his estateâs tax burden from the governmentâs first assessment.
Michael Jackson in 1984. The I.R.S. believed his estate had underpaid its tax obligation by just under $500 million.Credit.Doug Pizac/Associated Press
May 3, 2021
After Michael Jackson died in 2009, at age 50, the executors of his estate began shoring up the shaky finances of the onetime King of Pop, settling debts and striking new entertainment and merchandising deals. Before long the estate was in strong shape, with debts reduced and millions of dollars in earnings.