Estate Tax: Fair or Not?

[BigKahuna13]

Today the Senate rejected a Republican effort to push through a bill to cut the estate tax.

Just wondering what the general consensus among zoners is as to whether the estate is fair or not. Yes it generates a decent amount of tax money and yes it doesn't affect 90% of taxpayers, but neither of those
get to the issue of whether it's fair for Uncle to tax money/assets - that were taxed once before - simply because those assets are being tranferred to a beneficiary.

My own opinion is that it's a grossly unfair tax. If I've worked and amassed a sizable amount of money that I wish to give to my children our (allegedly rabidly pro family) government should keep it's bloody mitts off.

[Bubba]

I can't answer with a simple yes or no, and I definitely don't want to give the money to Andyzee. He'd start his own website and become incredibly boring as a result.

My view is that an estate tax should exist above a threshhold level - probably in the $25 million range - and be a reasonably low percentage, something like 10%, e.g. lower than the normal capital gains rate. To a limited extent, this would dilute the problem of inherited wealth creating an aristocracy while protecting the vast majority of the population from becoming subject to the estate tax simply because the value of assets such as homes and farms increased over time. I'd also index the threshhold to inflation, although not necessarily the CPI - maybe a broad stock market index that is more closely related to asset valuation inflation instead of consumer purchase prices. I'm just talking off the cuff at the moment and would need to think through the ramifications of the threshhold and the adjustment factors.

[Dr. NO]

I hate the extra taxes government imposes on people and families. Yes, some families can afford it, but the Estate Tax is responsible for loss of property in families that could not afford to pay the taxes without selling the estate, usually the family farm. They have improved it, but still it is taxing wealth and properties that have already paid the appropriate Tax.

And, the AndyZ option is wrong. You want to PAY AndyZ the money? It should be AndyZ should pay all the tax.

[yeti]

Seems like we can't favor the rich even when it is the right thing to do.