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Laws are made by an elite or by representatives controlled by an elite. The danger to a democracy is that the elite can spend large sums to get themselves or their friends elected to office. Once in office they pass taxes and other laws that favor the elite, thus putting the elite into even better positions to extend their control over time.

The low effective tax rate on the very wealthy in the US and the huge amounts of money funneled into political campaigns by billionaires may be seen as an emerging example of oligarchy. The US Founding Fathers passed inheritance taxes in order to avoid inherited oligarchy but these have recently been weakened.

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