People who are for tax think that the death tax is a great source of revenue for the government because this tax allegedly applies only to the rich. Inheritance or money passed from one party to another - proponents of raising taxes say this money should be taxed, just like income or taxable gifts.
But what is inheritance tax? Why is there a tax on death? And how does this "death tax" work?
The inheritance tax rate depends primarily on the type of property being inherited and the relationship of the heir to the deceased. For example, when Mr. Smith dies, he leaves his mansion and fortune to his children, his fancy car collection to his brother Ralph and his yacht to his old fishing buddy Terence. Usually, each child must pay taxes on what he or she inherits. That's what we already know about inheritance.
Ralph must also pay taxes on the car collection. He will probably be taxed at a higher rate than Mr. Smith's children because he is neither a child nor parent of the deceased. Non-lineal heirs are generally subject to higher inheritance taxes. Since Terence is not at all related to Mr. Smith, he will be subject to the highest taxes.
Just because you inherit money doesn’t mean you’re rich but it does mean the government could take almost half of your inheritance. They say they are taxing the rich, but they are really taxing everyone. The government saw a chance to get their hands on your family's dynasty, they are taxing your inheritance because they feel you are getting more than you need. That’s right, rich or poor they really do not care - it’s all about how much money they can get so they can keep spending.
Tell me, what is your opinion on the inheritance tax?
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