What tax policies would the top out-of-sight class favor, assuming they are selfishly interested in preserving their wealth and status and passing it on to the next generation?
1. They would favor low estate, gift and inheritance taxes so they can pass on their wealth to the next generation.
2. They would favor low taxes on investment income, because their ratio of investment income to salary income is much higher than for the average person.
3. Their favorite hobby is philanthropy, so they would favor special tax breaks for charitable giving.
4. Their other favorite hobby sending their children to elite and expensive private schools so they don’t have to mingle with the lower classes, and they would like some sort of tax break for that.
Well it turns out that issues #1 and #2 are pet issues of the Republican Party.
The tax code provides lavish tax subsidies for charitable giving because the gifts are completely exempt from gift taxation, and they can generally be used as a deduction against other income.
The tax code isn’t quite as generous with tuition for private school; it’s just exempt from the gift tax.
Democrats and Republicans alike seem to be behind issues #3 and #4. This is because the Republican Party has never met a tax break it doesn’t like, and the liberals who control the Democratic Party realize that these gifts mostly benefit liberal-controlled institutions, which are practically 100% of all colleges and universities, and the vast majority of non-profits and charitable trusts. The interesting thing about charitable trusts is that, even when they are founded by rich patriarchs with a conservative bent, they wind up being controlled by their much more liberal descendents or by the professional non-profit workers who are probably as strongly liberal as college professors.
Why do Republicans support #1 and #2 so strongly when two-thirds of the top-out-of-sight, maybe even more, probably vote Democratic? The commenter Mercy Vetsel suggested that the one-third of top out-of-sighters who vote Republican have enough control over the Republican Party to get it to fall behind their two most important tax wants.
However, it must be pointed out that the fact that most top out-of-sighters vote Democratic even though the Republican Party is more in their pocket goes to show you that they either don’t operate out of self-interest, or they lack awareness of their interests, or they feel guilty about their interests.