If a new report is accurate, then prepare to hear about the estate tax and income inequality even more in the next decade.
One of the biggest issues for politicians and economists currently is the inequality of wealth and income. It has been pointed out countless times that throughout the world, and especially in the U.S., the incomes and wealth of the richest people are growing exponentially while the income and wealth of everyone else is barely growing at all.
The extent people think this is a problem, if they think it is at all, depends on their political leanings and the economic theories to which they subscribe.
As Market Watch reports in “The largest wealth transfer in history has already begun” a new report would seem to indicate that discussion of the issue is not going to go away anytime soon.
Wealth-X and NFP estimate that by 2026 approximately 14,000 ultra-wealthy people will pass away and leave their fortunes to the next generation. The estimated total value of those transfers is $3.9 trillion.
It is not always possible to predict with great accuracy how people will react to things, but it is almost a near certainty that such a vast transfer of wealth to heirs who did not personally earn that money will keep the debate over the estate tax going.
People who are in favor of the estate tax believe it is unfair and harmful to society when too much wealth is passed between generations of the same family. Those who oppose the estate tax believe such wealth rightfully belongs to the family that earned it instead of spread among those who did not.
Reference: Market Watch (Sept. 18, 2016) “The largest wealth transfer in history has already begun”