Lottery Winnings & The Estate Tax

What's a fair rate of taxation for lottery winnings? Should society be entitled to any share of manna that falls into our laps because we had the good fortune (or foresight) to be standing in the right place at the right time? 35% on anything over $5 million sounds a bit low to me.

There's the concept of "noblesse oblige" in a moral economy where privilege needs to be balanced with a duty towards the less fortunate. Progressive taxation (including the taxation of estates) is the method of seeking such balance in civilized societies.

Those who are born into great wealth and privilege didn't do anything to earn the same. To paraphrase the late great Molly Ivins, if you're born on third base don't go around claiming to have hit a triple.

Hostage Negotiations & Punting

Over the past several days I've heard a lot of talk about punting on second or third down in reference to the tax-hostage situation President Obama is trying to resolve. I first heard of the concept of punting on second down over two years ago when a friend, Conrad, used it in reference to the selection of Sarah Palin as John McCain's running mate. That was a truly disastrous play that might continue to haunt us for another generation.

I'm more inclined to liken the current situation to the end of a half where a promising game has gone increasingly awry. The clock is winding down and instead of trying for a touchdown, President Obama runs a play to get to his kicker's preferred hash marks for a field goal try. The fans are outraged. Some are calling for the coach to be replaced. The try can be blocked (Minnesota Viking fans don't need to be reminded of 1998 and sure bet field goal tries). Three points is obviously less than six, but a lot more than zero.

Folks, there's still another half to play (fortunately or unfortunately).