Why the GOP Loves Death
Chatterbox has pioneered in the emerging field of necro-monetary policy (the
study of the impact of economic incentives on the decision to die). First to
explicate the implicit logic in the Republican Congress' push to eliminate all
inheritance taxes (see
Allen, 7/12/99), Chatterbox followed up with empirical evidence in support
of Allen's hypothesis that, consistent with economic theory and the human
distaste for the tax collector, high estate taxes are positively correlated
with low death rates, and, conversely, low estate taxes, such as the GOP seeks,
are correlated with high death rates (see
Plotz, 7/19/99). Neither of these seminal contributions to the literature,
however, satisfactorily explained (or, indeed, even attempted to explicate) the
motivation behind the GOP leadership's effort to accelerate the shuffle
off this mortal coil into a 50-yard dash.
Most GOP politicians are, of course, in the forefront of public
manifestations of piety. But with regard to the timing of a meeting with the
Great Maker, they have been firmly on the side of later rather than sooner. So
why would a pro-life caucus push so hard to eliminate a policy instrument, the
"death tax," as they routinely denote it, that has such a proven record of
encouraging longevity? The answer may be found in a recent
study emanating from the Urban Institute. In exploring the ramifications of
Social Security's long-range forecasts, researcher Lawrence H. Thompson points
to a startling fact. Almost 60 percent of Social Security's much deplored
long-term deficit is owing to the expectation that, as the next century
progresses, Americans will live still longer and, largely in consequence of
their advanced ages, suffer more disability. Thompson suggests only two ways to
deal with the projected shortfall: 1) cut benefits or 2) increase the share of
GDP devoted to Social Security--i.e., raise taxes. Neither of these
alternatives will recommend itself to a Congress whose desire to placate
high-voting senior citizens is exceeded only by its desire to deliver big tax
cuts. Thus the genius of the death tax repeal proposal: Why not cloak a sharp
cut in benefits in the soothing shroud of a tax break? Bill Clinton must be
jealous.
