The founders of the U.S. wanted to avoid establishing a permanent aristocracy or group of wealthy families who could control a great deal of the nation’s wealth. How is this idea related to estate and gift taxes?

There are two points that I would like to single out that are very similar. First by implementing tax and gift taxes, Founding Father wanted to weaken families and business of that time, since there was a threat that rich families could become permanent aristocracy which over time could lead to the point where that families will rule the US. Second, by implementing those two taxes, government is taking a share from receivers since the receivers are getting some good that they did not earn it, they have just received it as a gift or as an estate. This way inheritance or gift would be of a much lesser value then it was before someone’s death or before someone made a gift. This was important because wealth of powerful families would just accumulate and grow so government of that time, strictly out of political reasons, prescribed those two taxes, so that the wealth will be smaller of value after tax.

jayilych4real jayilych4real · Answer 2 · 2021-11-18T14:53:43+01:00

The idea of avoiding an aristocracy by the founders of USA is related to estate and gift taxes because:

There was a need to reduce the influence of the wealthy

According to the given question, we are asked to show the link which the founders of America had to preventing aristocracy and imposing estate and gift taxes.

As a result of this, we need to remember than an aristocracy is a government based on the wealthy and influential members of the society and this was one of the things which the Founding Fathers of America sought to prevent.

With this in mind, we can see that they imposed gift and estate taxes which was specifically targeted at the extremely wealthy so that their influence would be reduced and the country would not become an aristocracy.