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The inheritance tax is a tax on people who were too stupid to put their money in a family trust or similar arrangement before they died. It's trivial to avoid i
by twblalock 10y ago
The inheritance tax is a tax on people who were too stupid to put their money in a family trust or similar arrangement before they died. It's trivial to avoid if you are the kind of person who has enough money to be subject to such a tax. Increase the tax, and avoidance will increase as well.
- hadfgdasf 10y agoYou would be wrong, because you do not understand the estate tax system in the USA. There are things like the generation skipping tax. All the significant loopholes are covered, in terms of passing on wealth and avoiding any estate tax. That said, the estate tax is very low. The exemption is huge. The vast majority of people who die in this country are just folks and they bury their dead and they don't go through probate or have trusts. Maybe they have a little life insurance if they are lucky.
- pg314 10y agoHas anything changed on that front since 2013? Has the GRAT loophole been closed? [1] https://www.bloomberg.com/news/articles/2013-12-17/accidental-tax-break-saves-wealthiest-americans-100-billion https://www.bloomberg.com/news/articles/2013-12-17/accidenta...
- hadfgdasf 10y agoGRAT loophole is not just a "family trust," and it doesn't make estate/gift tax trivial to avoid. It is ridiculous that it persists though.
- Eridrus 10y agoI don't know all the loopholes, but I agree that we should be closing them. The thing about the law is that it can be very flexible if we want it to be, so if we were serious about enforcement we could definitely do it, we're just not that serious about it.