[ExI] The Dogs of Immortality

[Harvey Newstrom]

On Friday 11 July 2008 23:28:42 Kevin Freels wrote:
> This estate  tax is a shame. These "estates" are just the money left over
> AFTER all the income taxes were paid. It's absurd.

Couldn't the same be said for income tax?  I already paid income taxes on my 
money when I earned it.  Why should a person working for me have to pay taxes 
again when that money passes to them?  As far as I can tell, taxes are applied 
every time money changes hands, either as income tax or sales tax.  Why should 
estate taxes be any different?

Is there a fundamental reason why income should be taxed and sales should be 
taxed but inheritance should not be taxed when it is passed between 
individuals?  Do you feel the same about gift taxes?  Should someone receiving 
a large gift pay taxes on it?  If so, how is this different than inheritance?  
If not, why should people be taxed on earned money but not unearned money?

I.E., what is the underlying mechanism used to determine what should be taxed 
and what should not?

-- 
Harvey Newstrom <www.HarveyNewstrom.com>
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