Phoenix tax

Some say that an inheritance or estate tax is a pointless tax. It is sometimes called a death tax because the purpose is to collect a percentage of deceased's estate when it transfers to another. Yet, there is more to the conversation that some people have ignored haphazardly.

By having an inheritance tax one produces creative destruction, which is the idea that once something stops existing the resources it contained is poured into the markets once again. Applying this to the idea to of inheritance tax, it starts to seem like a better idea because it allows the flow of goods and money to return to the markets that individuals can hoard. Yet, one thing that stands opposed to this creative destruction is tax havens, which allows individuals to hide his or her assets from taxes, hence the name. The economy can only operate effectively if the flow of goods and services are moving smoothly through the markets. The liquidity cannot go too fast or slow; it needs to be a steady flow.

In context to the current events that are occurring within the means of communication, there are numerous stories of tax avoidance, policy manipulation, mixed-signals in the markets, bubbles, and a disappearing of the middle-class. This causes damage to the economy and effects upward mobility due to upward mobility is dependent on the health of the economy, which itself is dependent on liquidity in the market. If vast swaths of wealth are being held and contained by a few individuals, the economy will slow to a near complete stop. This will produce places that have two groups, those who have and who do not. This will further the poor health of the economy, similar to how one's poor health continually adds to itself if left untreated.

The percentage amount will need to be carefully chosen because too high of a percentage may have negative impacts, and too low of percentage will not add enough to the economy. The balance can spur the economy to become more liquidated, allowing the economy to start getting into shape.