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THE PATRICIAN CLASS
by David E. Meadows , [IMAGE]2005

ARTICLE ORIGINALLY APPEARED AT MILITARY.COM, June 14, 2006

[IMAGE] If I had $2,000,000, then supporting the abolishment of the Inheritance Tax might be something I’d approach with great vigor so my children could have the fruits of my labor. I could be one of the rich and powerful standing on that mountain top in the midst of a thunderstorm laughing wildly, my fist high gesturing in the rain, and daring fate to stop the Meadows family. Eventually, my descendants would amass sufficient wealth to become members of the rich and powerful. We’d rise so far above the average American we’d only glimpse them periodically between the spaces of the iron bars separating our property from their poverty.

But………there is no mountain and there is no Meadows’s millions. Like the vast majority of Americans I don’t have $2-million dollars to leave to my children. So the Inheritance Tax should not affect me.

But, it does; not only me, but also you, our nation, and our descendents.

When our ancestors arrived in America, unlike the countries they left, they discovered a nation with no aristocracy. The new world beckoned; a free land where hard work, tenacity, and sacrifice gave everyone an opportunity to accumulate wealth and build a better life.

A challenge with this opportunity and for our nation has always been to stave off the establishment of a privileged class; a homegrown aristocracy. It is a challenge that has ebbed and flowed around the tide of economics and politics. We have a ‘Horatio Alger’ respect for those who overcome adversity, accumulate wealth, and find happiness. We love them. We read about them. We buy their autobiographies and follow their ‘how to’ suggestions.

Unearned wealth we have never appreciated. Intrinsically we abhor it. It is a dangerous scheme that changes society and the face of a nation. Inherited wealth deepens the economic and social chasms between the ‘haves’ and ‘have nots.’

This month, Congress is debating abolishing the Inheritance Tax. The Inheritance Tax affects those with over $2,000,000 when they die. And, then, only the amount above the $2,000,000 is taxed.

Having an administration composed of multi-millionaires trying to abolish the Inheritance Tax seems to this ole boy from Georgia to be a slight conflict of interest-like asking the fox to watch the hen house.

“So what?” you ask. “They worked for it, let them have it. It doesn’t affect us.”

Unfortunately, it will affect us, if it is abolished.

Somewhere the tax revenue has to be made up. What will happen is that our income taxes, or other taxes, will rise to make up the revenue difference. Eventually from our pockets will come the money to protect the accumulation of vast wealth by rich and powerful generational families.

If congress is successful in protecting the accumulated wealth of millionaires, then inherited money will give rise to an aristocracy in America – a Patrician class of spoiled children and omnipotent families. Inherited money turns into inherited power. Future beneficiaries of this abolishment will guide our nation in an ignorant tyranny by the wealthy.

The average American will be stranded outside the iron fences of wealth within which will rest the power to control the fate and the face of our nation.

There are counter arguments from our elected representatives on reasons why we should abolish the Inheritance Tax. The arguments are smoke screens.

The most powerful argument will be how doing away with it will protect family farms that feed America. Rising property values will cause these farms to exceed the $2-million cap when the head of the family dies. America will face starvation.

What hogwash! Corporations now own most large farms. But, those family farms (and I have great respect for farmers) can be protected from Inheritance Tax abuse. If anyone should know that, it should be the slew of unemployed lawyers we send to Washington as elected representatives. States such as Maryland have protected such generational farms with trusts. Laws can be modified to protect ‘real’ farmers. That’s why we elect representatives – to do the right thing for America and for their constituents; not for their political party or for wealthy contributors.

Another argument will be that entrepreneurs, who have lived the American dream, will die with their businesses being torn apart to pay the Inheritance Tax. ‘Think of the thousands of Americans who will be unemployed when that happens,’ they’ll whine, wringing their hands.

Entrepreneurs are successful because they are smart. By the time most decide to leave their business, they have turned them into privately held corporations or gone public.

No, this tax does not impact the American dream, but it does help protect us from an American nightmare.

Keeping the Inheritance Tax is a small price to protect our nation against a future where rich & powerful families manipulate America for their own self-interests.

Then again………the actions of this administration may be telling us we’re already too late.

David E. Meadows / SixthFleet.Com
David E. Meadows
Washington D.C.

E-Mail readermail@SixthFleet.Com

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