The money was taxed. Will we now tax birthday checks? Christmas presents? Give me a break.i think it is a very apt comparison
that person who inherited the estate will have to pay taxes on it like that person who won the lottery
neither worked for their new found money
both should have to pay for that income just like those who worked for a paycheck
NOPE. not to the person who inherited that income. every dollar was unearned income on which they have paid no taxes. why should money one has not earned go untaxed while those who work to receive an income have to pay taxes on their hard won money?
Grasshopper, I'm quite familiar with probate.there is no confiscation. you need to become acquainted with a new term: "probate"
it is very different from confiscation. learn the difference
Link please?NOPE. you are wrong again. which is why you need to immediately embark on a study of probate to find out the actual process
Wrong. The estate pays the taxes before the money is distributed. That's why it's called an estate tax. Why should anyone have to "obtain good legal counsel" to protect one's assets from confiscation?the business is not having to pay the estate taxes. the beneficiary is. this assumes the deceased failed to obtain good counsel and place the estate in a trust to avoid the inheritance tax which may result
I think you'd better do your own research, Grasshopper. Again, it's a tax on the estate. The estate pays the taxes. The estate pays the tax, not the recipient.why would the need of the beneficiary to pay estate taxes necessarily cause the business to close its doors eliminating the workforce of the employer? if the person who inherited those ASSETS is illiquid, then they could either obtain a loan against the assets they had realized to satisfy their tax obligation, or sell all or part of their business interest to satisfy that debt. they now own assets they did not otherwse possess, and can use those newfound assets to cover the inheritance taxes. notice that none of that caused the dissolution of the small business. a profitable small business will have some degree of equity, which equity can be realized. only someone with a limited understanding of economics would presume that a small business must be closed and sold to pay inheritance taxes
Does it make you feel better to claim others are ignorant? Makes no difference if it's taxed at highest-and-best or as farmland. It's all nothing but confiscation of wealth.again, you have proven your fundamental ignorance of basic economics. again, let us assume the deceased failed to adequately shelter his farm estate in a trust to avoid inheritance taxes, causing the beneficiaries to have to find the monies to pay the taxes due. just as with the above described business, the farm can be used as collateral to realize loan monies to satisfy the estate's taxes. Since you specifically addressed the 'highest and best use' value of the farm, that has a variety of implications on the estate. some communities establish a 'farm' tax valuation, which could be pointed to as the legitimate value of the estate being passed, thereby diminishing the tax amount due. but if that is not a possibility or where the farm will not continue to be operated as a farm entity causing it to lose its eligiblity for continued 'farm' valuation, here is the consequence of it being found to possess its full 'highest and best use' valuation: it will be subject to increased taxes ... BUT only because it will carry a higher value. the beneficiary would thus realize a higher benefit upon which they would pay equitably higher taxes.
Why are you bringing up wage earners? That simply confuses the issue. But, of course, you know that. Inheritance taxes are, at their core, merely a confiscation of wealth.let's examine that position. you think it is government theft to tax unearned income of the beneficiary who did nothing to realize that income, while it is accpetable for the wage earner to be subject to taxes on every dollar of income they worked to realize
i think it is actually closer to theft when the person who did nothing to realize their windfall pays no taxes which have to be made up for by the person who works for and pays taxes on their income