Estate Tax and Oregon Assisted Suicide

January 4, 2010

n insurance it’s called a “moral hazard”. A moral hazard is the result of maximizing behavior. A person weighs the costs and benefits of an action and when benefits exceed costs, he takes the action. For example, if an accident costs the person $1000, but pays $2000, the person not only has no incentive to avoid the accident but may have an incentive to seek it out.

What has this got to do with assisted suicide? There could be “millions” in estate tax reasons why they relate. Estate taxes have long been referred to as the “death tax”, but 2010 may shine a whole new meaning on that term. Presently the estate tax is 45%. The estate tax will drop to 0% for just one year, 2010, and then return to the pre-Bush administration rate of 55% in 2011. (Oregon Business News)