If All inheritance was taxed at the same rates as salaries and wages, the average working person would only need to pay about half what they pay now (for the government to have the same revenue) Some say it isn't fair. I've heard all the arguement. "its double taxation". Well so is sales tax, import tax and property tax. The simple way to avoid paying it: spend it wile your alive, and give people who actually work for a living a break.
2007-06-03 10:34:16 · 4 answers · asked by wisemancumth 5 in Business & Finance ➔ Taxes ➔ United States
What about those who work for a living and save a little to give to their kids or whom ever "they" wish? Who are you or the government to say that it should go to the "general good".
2007-06-03 11:20:15 · answer #1 · answered by ? 6 · 0⤊ 0⤋
What???? Seriously what are you talking about? the tax rate on inheritance, estate/gift tax is 46% the top bracket for income tax is 35%. Yes there is an exemption for 2 million dollars but that would put the gov't nowhere near close to its money on income tax. Sales tax and property tax are taken by a different gov't state and local. Almost every single person who pays gift/estate did work for their money and the money was taxed at a previous time. Your system would be a complete mess that would ruin all of the financial structure of society. Everytime someone died they would have to sell their home to pay the tax on it instead with an exemption amount people do not have to pay tax on the transfer. If this happened as you want housing pricies would drops a lot.
PLUS where did you get this information about only having to pay half.
2007-06-04 17:34:56 · answer #2 · answered by ainger452 3 · 1⤊ 0⤋
The CRITICAL flaw in your analysis is the assumption that inheritances would remain at current levels if taxed. That statement is demonstrably FALSE. As you pointed out in your last sentence, much of what is currently inherited would be spent before death. Want to bet you would not like how it was spent?
2007-06-03 20:04:29 · answer #3 · answered by STEVEN F 7 · 1⤊ 0⤋
Oh sure. As if the government would stop charging taxes the way they currently do, even if they did charge inheritance taxes in the manner you suggest.
Please -- the government will bleed us all as dry in one way or another.
2007-06-03 17:55:48 · answer #4 · answered by ISOintelligentlife 4 · 0⤊ 1⤋