In this section, Collins addresses the controversial estate tax, which taxes the leftover wealth of the deceased before it is inherited by their relatives. Collins makes it very clear that despite his own inheritance, he is in favor of keeping this tax. He begins by acknowledging the opponents of the "death tax," which are many people (often small business owners) who believe since they have worked very hard for their fortune - without any help - should not have a portion of their legacy given to the government. As a small business owner who received no college education and started his company by selling his house, my grandfather has taken this stance and has thus been what I have grown to believe.
It was very interesting listening to the arguments made by Collins and other supporters of the estate tax. Collins referenced Martin Rothenberg, an owner of many technology companies. In a press conference at the White House in 2000, Rothenberg talked about his own story of building his net worth. Although he did not receive monetary help from anyone along the way, he still got aid from the society he lived in. He listed his local library, the student loan programs, and state universities that helped him and his employees gain the tools necessary to build these companies. He said that because of this, he believed he had an obligation to pay back the society that helped him get to where he was through the estate tax.
In chapter 5, Collins recaps his time on the road with Bill Gates Sr., while promoting their book, Wealth and Our Commonwealth: Why America Should Tax Accumulated Fortunes. In many gatherings Gates spoke at, he brought forward similar arguments as Rothenberg. At one event, Gates referenced Uncle Sam as the world's greatest Venture Capitalist. He argued that historic public investments have allowed businesses to prosper today, such as the creation of the internet.
I appreciate how Collins gives legitimacy to some of the points made by the opposition. In the majority of opinionated articles such as these I have read, the author often takes such an extreme stance to one side and tries to dismiss all claims made by the opposition. From my experience, I have trouble seeing through the bias in those types of articles and am never convinced by their claims. Contrarily, I gave Collins credibility to his claims, and have ultimately changed my perspective after reading this section.
Wow, super interesting hearing your take on the estate tax. I just read someone else's blog and their take was different yet both of you made such great points. I can definitely understand how your grandpa wouldn't want his money taken away after he made such a life for himself on his own.
ReplyDelete-Olivia O
I can agree with you that after listening to Collin's argument, my mind has changed as well. I was against the death tax previously, but now I am in support of it. It is great to be able to read an intellectual book that portrays both sides of the argument.
ReplyDelete- James Yun
I'm still hesitant to change my position on it but it might be because I haven't had the chance to read that article. I think comparing the U.S. Government to a VC firm is a pretty bad comparison, and I still think the estate tax shouldn't exist.
ReplyDeleteI just recently learned about the tax from another blog post so it's nice to read more perspectives on it. Although I don't know much about it I find it very interesting that Collins is in favor of keeping the tax despite his wealth. It does show that he has a big heart and isn't looking out for his own best interest.
ReplyDeleteI think that one of the better things Collins does throughout the book is provide legitamacy to points made by the opposition. While he may have very set beliefs about a variety of viewpoints he still gives the opposition legitamacy.
ReplyDeleteDam
Davis,
ReplyDeleteGarrett wrote about the same idea from Part 2 that you did and I think the death tax idea and opinions are quite interesting. I have to personally say that I do not agree with Collins on this one. Although I see many benefits for the death tax and the government, I disagree with the government regulating and taking a family's earnings, even if it is only earned by one person. In some cases, people work hard so later generations can have an easier life.
-Clifton