That is an interestng point that you mention about how the death tax encourages people to spend money, and thus, is good for the economy.
However, I think that, in the long run, putting money into savings and investment is actually better for the economy than spending. So, to this degree, getting rid of the death tax would be a good idea.
Another thing that I have always said is that when you tax something, you get less of it. So if we raised the death tax high enough, no one wold ever die! [just kidding!]
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