From Kevin Williamson at National Review, Elizabeth Warren’s Financial Berlin Wall:
The class-warfare dreams of the American Left do not have a great deal to do with their professed desire to build a Scandinavian-style welfare state here. The U.S. tax system already is much more progressive than is typical of Europe, including the Scandinavian countries, and by some measures is the most progressive in the developed world. The northern-European welfare states do not differ markedly from the United States in how they tax the wealthy; they differ in that they also tax the middle classes heavily, which the United States does not. There is in fact much about the Swedish tax regime that a billionaire might prefer: There is no inheritance tax, no gift tax, very little property tax (it is capped at about $800 a year), relatively low and straightforwardly administered business taxes, etc. Because Sweden is well-governed, it treats its tax regime as a question of revenue rather than a question of so-called social justice, which is why the inheritance and gift taxes so beloved among American class warriors were scrapped: They generated practically no revenue (about 0.2 percent of total tax income), they were difficult to administer, and they created all sorts of perverse incentives that were not in Sweden’s long-term social interest. And so it is no more: That is how intelligently administered countries do things.
Grumpy Economist John Cochrane wished for the separation of the tax code between what is taxed for needed revenue and what is taxed in the name of social engineering and state morality. The latter is often counter productive to the former.