Yes, I agree, it would make a lot of sense for the money raised through death taxes to be invested in an optimal way.
As to tax avoidance, I think we're stumbling towards a solution to the issue you describe... Firstly, I think there's a pretty meaningful crackdown on global tax avoidance capabilities which appears to be actually bearing fruit somewhat. Secondly, I think the giving pledge is also a step in the right direction (and, like I said, I am personally intending to act according to it). Death taxes by "peer pressure", in a way. Finally, my whole point here was to try and separate the idea from the implementation. The poor quality of the implementation is our collective problem and our fault, since we elect the governments that fail us in this. Methinks, the solution to such a situation isn't to discard the idea, but rather to improve the quality of the government.
As to your statement regarding the political views of the rich, it appears that empirical evidence suggests the opposite. For instance, see this paper here: http://journals.cambridge.org/action/displayAbstract?fromPage=online&aid=8864478
Here's an excerpt from the abstract:
"But until now there has been little systematic evidence about the truly wealthy, such as the top 1 percent. We report the results of a pilot study of the political views and activities of the top 1 percent or so of US wealth-holders. We find that they are extremely active politically and that they are much more conservative than the American public as a whole with respect to important policies concerning taxation, economic regulation, and especially social welfare programs. Variation within this wealthy group suggests that the top one-tenth of 1 percent of wealth-holders (people with $40 million or more in net worth) may tend to hold still more conservative views that are even more distinct from those of the general public."
Martin, the problem I have with those studies is how they define a conservative. As a person who took econometrics in college, I know how easily flawed that data is. For example, many people might think I'm conservative because I'm NOT liberal. But I'm no where near conservative but I would be defined that way in that study simply because I'm "against" the use of misallocation towards welfare. Those studies are rather useless and usually are generated to serve some political end. Logically we can deduce that "being" liberal is actually more optimal for most billionaires in terms of their own personal utility. Once you are rich, you want the government to protect you and you are indifferent if others can become rich themselves. It's only when you are in the middle class that you hope to have all the resources to become rich hence why there is such a strong lean in this country for the middle class towards the right. Usually the extreme ends of the spectrum are going to be center left as they should be, it's the most optimal strategy.
But measuring who qualifies as a conservative or liberal in terms of studies is completely bogus. I would wager Martin that if you looked at the coefficients used in that study and looked at their p-values individually you would see all of them showing little to no statistical significance. I know because I actually have DONE those regression studies.
As to making government better....LOL. Martin, I always applaud people with good intentions but talk about wasteful efforts. Don't try to make gov't better, just try to make the game more fair. Usually that means distributing power away from the gov't back to the people. But not through the means of the gov't. In other words, don't let the gov't allocate power back to the people by their own proxy. Because they will just give power to those that will hand it back to them and round and round we go.
