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Argument: Estate tax increases cost of capital

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"increases the cost of capital, slowing down research and development and the use of machines that would increase worker productivity -- and thus wages"Heritage Foundation '96. Heritage Foundation '96: "According to an econometric study conducted by Professor Richard Wagner of George Mason University, the effect of the estate tax on the cost of capital is so great that within eight years, a U.S. economy without an estate tax would be producing $80 billion more in annual output and would have created 250,000 additional jobs and a $640 billion larger capital stock."

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