5 ms·

I mostly agree on that. How do you feel about current estate taxes, which, in effect, mean the third person has paid more tax than the first two?

• dlp211 6y ago
  Estate taxes are on the estate, not a person. Also, there is a built in assumption that taxes have been paid. This is almost always not true, see step-up cost basis. Estate taxes serve a purpose, though I would argue that a lack of will has caused them to not serve that intended purpose. That doesn't mean that estate taxes aren't the right tool, just that it has been sabotaged. That also doesn't mean that they are the correct or best tool, but until we can see what the full force of estate taxes are, it is impossible to say. The type of tax that you just described is called an inheritance tax, and I am perfectly ok with them as well. Income is income, it doesn't matter whether it comes from your employer, a rental company, self-employment, or otherwise. Something I would be against is both an Estate and Inheritance tax being levied by the same entity. That doesn't serve any real purpose. I'd actually prefer an inheritance tax combined with a more progressive tax system over an estate tax.