171 posts of vigorous debate on estate tax and no one mentions this need to redistribute wealth as the justification for the estate tax. Martha has consistently said it’s another transfer to taxAnd this where all the hypocrisy slips in, IMO. Those in favor of Estate Taxes talk about how we need to redistribute wealth, how the rich can afford it, it was just luck anyhow, and they shouldn't be allowed to pass much to their kids because that just creates modern monarchies.
I view it as a substitute for taxing the asset gains and income to the recipients.Given that we as a society taxes transfers I see no reason to exempt transfers on death
There is no hypocrisy in either of these two arguments.Double taxation applies to the same income and the same individual, not the same income and another individual. Why should one person be allowed to receive income and pay no tax while another receives and pays
The two richest (Gates and Buffet) have been quite supportive of the estate tax, do not appear to have engaged in any evasive tactics and have chosen to use their assets for the benefit of humanity.[Yet, the richest (who would contribute the most to our deficit) are the ones that can pay to avoid a large part of it. It's actually quite a contradiction (though legally correct) to say they "gave up control" of their money, if it is eventually getting used just as they wished (passed onto others through irrevocable trusts, etc). Why pay someone to set it up so that you "give up control" when the govt will do that for you free of charge?
This is not about lawyers. Our society encourages individuals to work to accumulate unlimited assets. Great. They can give some away (quite a lot,actually) without any impediment or tax. But it does not allow them to give away unlimited amounts of assets without any tax being paid (with the notable exception of charitable giving). Our society wants people to work to earn the assets. The only thing “lost” here is the right to enjoy tax free unearned income for select individuals who in no way contributed to the accumulation effort.