Thursday, December 02, 2010

Economics is fun: Follow the money

Follow the money.... why repeal the estate tax, really?

Raise the price of a substitute (savings), and you shift out the demand curve for life insurance.

See, it's easy, and FUN!

(Nod to Angry Alex)

1 comment:

John Thacker said...

Also, life insurance proceeds are non-taxable for the recipients.

I sincerely doubt that the tax actually brings in more government revenue than it costs in compliance costs and economic inefficiency. It definitely costs the economy a lot.

It's a tax on dying unexpectedly, on poor financial planning, and on holding non-liquid assets.