The gift tax is a tax that is levied down to any person that is giving something away for less than the fair market value for that item. If someone sells a $10000 item for 1000 dollars than 9000 dollars is considered a gift. The tax base for this is 40% of what was given as a gift. The tax is levied down from the federal government. The people most affected by in change in the rate of the tax would be people that can afford to give away more than 14000 dollars in a year so most people are unaffected by it. There are many reasons why this tax is not a major concern for people. The first reason is every year a person can give up to $14000 and not be taxed and during your lifetime a person can gift up 5.45 million dollars before the person
