“Taxes,” according to Supreme Court Justice Oliver Wendell Holmes, “are the price we pay for civilized society.”
George Steinbrenner
On July 13, 2010, George Steinbrenner suffered a massive heart attack and died. Steinbrenner was worth about $1.0 Billion when he died (click here or here). Had Steinbrenner died in 2009, the tax on his $1.0 Billion estate would have been $450 Million. Had he lingered until 2011, the estate tax would have been $550 million. Thanks to the Bush tax cuts, $0 went to the United States Treasury.
By many accounts the Yankees needed Steinbrenner to build up the franchise. But think about the whole system. Steinbrenner and the Yankees, and all professional sports, would be worthless without other teams and fans. The Yankees need a stadium – which was built in part at public expense. Fans need to get to the stadium. Most of the people who live in walking distance, in Harlem and the South Bronx, can’t afford the ticket prices; a local transportation infrastructure is needed so fans with the ability to purchase tickets can get to the stadium. The NY Yankees franchise would also be worthless without other franchises, such as the NY Mets, the Boston Red Sox, the Los Angeles Dogers, etc. so a national transportation infrastructure is needed to transport players.
I would like to ask Steinbrenner’s heirs how they felt about the $1.0 Billion inheritance, the $500 million inheritance tax they avoided because Steinbrenner died in 2010, not 2009 or 2011, If they would have felt poor if they were splitting $500 million but if they feel rich because they now split $1.0 billion.