‘Death elasticity’ and more scenes from the class war

‘Death elasticity’ and more scenes from the class war December 30, 2012

CNBC’s John Carney discusses “death elasticity” in response to changes in the estate tax.

“Death elasticity,” Carney writes, “does not necessarily mean that greedy relatives are pulling the plug on the dying or forcing the sickly to extend their lives into a lower taxed period.”

“Not necessarily,” but apparently this happens. The rich really are different.

Carney says “death elasticity” in response to estate-tax changes is measurable:

Economists Wojciech Kopczuk of Columbia University and Joel Slemrod of the University of Michigan studied how mortality rates in the United States were changed by falling estate taxes. They note that while the evidence of “death elasticity” is “not overwhelming,” every $10,000 in available tax savings increases the chance of dying in the low-tax period by 1.6 percent. This is true both when taxes are falling, so that people are surviving longer to achieve the tax savings, and when they are rising, so that people are dying earlier, according to Kopczuk and Slemrod.

If I understand that correctly, “every $10,000 in available tax savings increases the chance of dying in the low-tax period by 1.6 percent” and thus every $10,000 in additional tax costs decreases the change of dying in the high-tax period by 1.6 percent.

So all we need to do is raise the estate tax by $625,000, and rich people will never die.

* * * * * * * * *

I only know what I hear on Fox News and what I hear on radio.”

“For Santorum and the conservative media, however, the question was not who would win or lose, but rather, how might they generate the most revenue.”

“I think when you define people who look differently than you as illegal aliens, and use that term over and over again, and talk about self-deporting them, that’s a tolerance issue.”

“Pardon me, madam, but I have been in your country of Australia for ten days and the only Aborigines I’ve seen have been drunk on the street, and at least if we were in my country they would be serving the drinks at this conference!”

“I’d still be leeching resources from a healthy body if I’d behaved myself.”

“The senators of the Mid-Atlantic did not vote against disaster relief for the Gulf Coast or for the people of Joplin, Missouri or for dealing with the Colorado wildfires or for flood victims along the Mississippi River.”

“If there are things we can do with the cheap money the world is flinging at us that would make the U.S. economy more competitive in the longer run, we should take advantage.”

The best plan for reducing the debt is full employment.”

“Come Dec. 31, Washington’s inaction could push the country’s milk prices to as much as $6 to $8 per gallon unless Congress passes a farm bill renewing federal support for agriculture programs.”

“The Senate version of the farm bill passed with relative ease over the summer, but House Republicans haven’t even brought a competing proposal to the floor for a vote.”

“As the defined benefit pension paradigm fades away, the natural and proper thing would be to rely more on Social Security as a vehicle for ensuring adequate living standards for senior citizens.”

“For 200 years the existence of the union movement has been wedded to the rise of democracy.”

“GiveDirectly remains an outlier in the development arena, perhaps the only organization that distributes private donations, made online, directly to the poor with no strings attached.”

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