(I am not suggesting *you* are saying that). The top marginal individual tax rate is 37 percent. Transfers like these are generally exempt from additional taxation, in order not to tax the same income twice. Double taxation is often an unintended consequence of tax legislation.It is generally seen as a negative element of a tax system, and tax authorities attempt to avoid it whenever possible. Simply because two people are involved in a transaction should not make their exchange of money a taxable event. The double taxation argument is problematic for a number of reasons. Money changes hands in the economy all the time without the creation of a new good or service. Questions about double taxation . See Appendix I for the national and state-by-state impacts.As illustrated in Appendix 1 at the end of this report, the proportion of estates affected by the federal tax in each state is similar to the nationwide percentage.Finally, even the portion of estates that have been previously taxed were likely taxed largely at preferential rates, since much of the income of wealthy taxpayers is in the form of investment income like capital gains and dividends. The estate tax is best characterized as the “death tax.” Reality: Everybody dies, but only the richest 2 …
The current federal income tax rate on corporate profits is 21 percent. Take the example of a business that produces a good and sells it to a customer, who buys that good with after-tax income. It is intellectually dishonest to say …. The reasoning is that if people believe a tax will reduce the estate they can leave to heirs, they will work less and save less to build up that estate. His bill would reinstate the $3.5 million exemption and apply graduated tax rates depending on the size of the estate, ranging from 45 percent to 65 percent, and close loopholes in the tax.
Simply because two people are involved in a transaction should not make their exchange of money a taxable event. well your dead and it’s found money for your kids… NONE OF YOUR F’ING BUSINESS what I do with my money. “The amount of money that is going to the trust fund babies?” Do you mean the amount of money that is legally inherited by the trust fund babies that has already been taxed ? The money has already been taxed – I don’t know how politicians can say that is not double taxation!! !Yes, it’s outrageous. This means that if Congress does nothing, the rules enacted in the Fiscal Cliff deal will come back into effect.Another popular talking point among opponents is that the estate tax leads to a lower rate of capital accumulation and creates a drag on economic growth. In other words, if an individual wants to leave behind $50 million dollars after taxes to their heirs, then a higher estate tax could increase the amount of value they need to create to achieve that goal.At a time when wealth is highly concentrated at the top and the nation is facing substantial annual deficits, a robust estate tax serves as a critical device to mitigate growing levels of inequality and provides a stable revenue stream to support necessary public investments.The estate tax exemption was $600,000 from the late 1980s until legislation enacted in 1997 allowed for its incremental increase. The bill would raise an estimated $314.8 billion in revenue over the next 10 years.Only 0.18 of estates paid federal estate tax in 2013, but many lawmakers nonetheless vowed to shrink it further.In addition, to the extent that the size of the bequest motivates individuals, it is equally plausible that the estate tax could increase the incentive for them to work and save to achieve a set bequest level.
Thus, 99 percent of estates cannot face “double taxation” under the estate tax for the simple reason that they owe no estate tax. The only way you can save a family farm is to split the acres among your children while you are alive.