Felipe Escobar The Estate Tax is Desirable 3/11/2016
The estate tax is a tax on property. It taxes, cash, real estate, stocks and other assets that are transferred from a deceased individual to an assigned heir. The estate tax is not double taxation as some opponents might suggest. Instead, the estate tax makes sure that the wealthiest pay their share of taxes just like the rest of tax payers do when they pay income and payroll taxes. The estate tax should not be repealed because it is the most progressive component of our tax system, it is a steady source of revenue and repealing it will hurt the economy.
Progressiveness
The estate tax is the most progressive component of the tax code. Currently, estates under $5.4 million are not required …show more content…
In 2013, the Treasure Department calculated that a combined twenty-four billion could be raised from 2013 to 2023 if proposed plans by President Obama were adopted. The president’s plan call for actions such as limiting the use of valuation discounts involving family-controlled entities like Family Limited Partnerships( FLP), which allows assets passed down to different heirs to be valued at less than the combined valued of the whole FLP. Another proposal is to reform Grantor Retained Annuity Trusts (GRANTs) to limit estate-tax end runs (¶ 13). It is important to close these loopholes because the very wealthy are actively taking advantage of these loopholes. For example, according to Americans for Tax Fairness (2014), the Walton Family has exploited a loophole to avoid paying three billion dollars in estate taxes (¶ 5). Sheldon Adelson, a casino entrepreneur has exploited a loophole that permitted him to pass eight billion dollars to family members and avoid $2.8 billion in estate taxes (¶ 8). Getting rid of the estate tax will only increase wealth inequality in the United States. According Marr, DeBot, & Huang, (2015) in 2012, the wealthiest one percent held …show more content…
Without the estate tax, heirs would be receiving millions of dollars tax free, which is not fair to other tax payers that get taxed multiple times through income, payroll and sales taxes. The estate tax also encourages charitable giving, so by taking away the estate tax, it will be hurting non-profit organizations. More importantly, the estate tax should not be repealed because it is the most progressive component of the tax code, it is a consistent source of revenue and repealing it will hurt the economy because there will be a loss in revenue coupled by an increase to the
The estate tax is a tax on property. It taxes, cash, real estate, stocks and other assets that are transferred from a deceased individual to an assigned heir. The estate tax is not double taxation as some opponents might suggest. Instead, the estate tax makes sure that the wealthiest pay their share of taxes just like the rest of tax payers do when they pay income and payroll taxes. The estate tax should not be repealed because it is the most progressive component of our tax system, it is a steady source of revenue and repealing it will hurt the economy.
Progressiveness
The estate tax is the most progressive component of the tax code. Currently, estates under $5.4 million are not required …show more content…
In 2013, the Treasure Department calculated that a combined twenty-four billion could be raised from 2013 to 2023 if proposed plans by President Obama were adopted. The president’s plan call for actions such as limiting the use of valuation discounts involving family-controlled entities like Family Limited Partnerships( FLP), which allows assets passed down to different heirs to be valued at less than the combined valued of the whole FLP. Another proposal is to reform Grantor Retained Annuity Trusts (GRANTs) to limit estate-tax end runs (¶ 13). It is important to close these loopholes because the very wealthy are actively taking advantage of these loopholes. For example, according to Americans for Tax Fairness (2014), the Walton Family has exploited a loophole to avoid paying three billion dollars in estate taxes (¶ 5). Sheldon Adelson, a casino entrepreneur has exploited a loophole that permitted him to pass eight billion dollars to family members and avoid $2.8 billion in estate taxes (¶ 8). Getting rid of the estate tax will only increase wealth inequality in the United States. According Marr, DeBot, & Huang, (2015) in 2012, the wealthiest one percent held …show more content…
Without the estate tax, heirs would be receiving millions of dollars tax free, which is not fair to other tax payers that get taxed multiple times through income, payroll and sales taxes. The estate tax also encourages charitable giving, so by taking away the estate tax, it will be hurting non-profit organizations. More importantly, the estate tax should not be repealed because it is the most progressive component of the tax code, it is a consistent source of revenue and repealing it will hurt the economy because there will be a loss in revenue coupled by an increase to the