Should we eliminate the Estate Tax?
What happens after we die? If one is a person of faith, we believe that there is another life after death, for example, Hindus with recarnation or the Abrahamians religions(Judiasim, Islam and Christianity) believe in the concept of heaven. In the United States, we believe in taxing people after they have past away, as another way to collect revenue to pay for social services. The tax use to collect revenue from deceased is known by various names but is most commonly known as tthe Estate Tax.
What is the Estate Tax? According the definition given by the IRS(Internal Revenue Services), they specific "The Estate Tax is a tax on your right to transfer property at your death. It consists of an accounting of everything you own or have certain interests in at the date of death"(paragraph one, 02/03/14), meaning that the transfer of our possession to anothers via trust, will or any other form is going to be subjected to taxation. Futhermore, there is limit on the amount before the government can start taxing. In addtiion, the IRS mentions how the values of our estates is determine, they say "The fair market value of these items is used, not necessarily what you paid for them or what their values were when you acquired them. The total of all of these items is your "Gross Estate." The includible property may consist of cash and securities, real estate, insurance, trusts, annuities, business interests and other assets"(paragraph one, 02/03/2014), in other words is not until we know the gross estate is when we known is the person qualifies for the taxation. Lastly, since 2011, taxation does not apply if the deceased estate is being transfer to a spouse(paragraph five, 02/03/2014). The estate tax is p...
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...es $9 millions, which makes 18.3% of the estate tax for the federal government and 5.2% of the states (ctg.org, 10/04/2006). Lastly, an estate worth $20 million or more, the federal government receives $5.7 billions and the states $2 billions,which makes 14% of estate tax for the federal government and 5% for the states (ctg.org, 10/04/2006). The total amount that the federal government collects from the estate tax is $21.6 billions and the states collects $6.3 billions (ctg.org, 10/04/2006). The estates tax helps government generate revenue.
Conclusion
Overall, we should not repeal the Estate tax due to it encourage others to give to charirties, it helps with our deficits and it generates revenue. All those three reason are positives consequences that have arrive from the estate tax. We should modify the tax but we should never repeal the estate tax.
Our current system of taxation is a varied rate percentage based on different income brackets. Many say that it violates our constitutional rights through unequal taxation. Multiple deductions, loopholes, special rates, and a complex system of regulations all characterize our Federal Income Tax System, prompting many to question why it is still being used (Peters, 2013). The current system although bringing in over $3 trillion, taxes income multiple times, and includes the taxing of estate, labor, savings, and investments (National Priorities Project, 2013). The system itself is complex with over 20,000 pages of regulations, requiring a massive filing system, which is set up and maintained by an even larger IRS, requiring over $225 billion in compliance costs (Hall, 2001). One can be hard pressed to find an advantage in the current system, other than the fact that it provides the government with an enormous amount of funds, and it has...
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To understand this compromise, there needs to be a basic understanding of the United States current tax code, more specifically in this situation the federal income tax code. The income tax makes up 46 percent of the federal governments three trillion dollar internal revenue, that is 1.38 trillion dollars (.N.p.).
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Introduction: In the year 1862 during the civil war congress implemented the first income tax in America. It was 3% per year. However, it was not until 1913 when the 16th Amendment to the Constitution was passed, which granted the government the ability to impose a tax on individuals’ income. Since then it has been an issue to determine how much people should be taxed. Tax rates in America change drastically; for example, in 1963 a person in the highest tax bracket would give 90.8% of their income to the government. In contrast, that same person would only pay 28.0% in 1988. The tax rate for income tax is an issue because for every dime that someone pays in taxes is one dime that they are not able to spend themselves. Additionally, people
The formula clause does this by requiring the exact amount of property required to reach the lowest amount of estate tax attainable, be transferred to the Marital Trust and the residue transferred to the Family Trust. In this circumstance, the formula clause has allowed the estate to avoid any imposition of estate tax at all. Now that the estate tax has been calculated, the true worth clause allows any increase in value or income earned on the property to be transferred to the Family Trust tax-free. This bars the spouse from having to pay estate tax on this increase when he or she dies. The clause achieves this by only transferring property with a fair market value at the time of distribution equal to the value allocated to the Martial Trust at death. Rev. Proc. 64-19
Taxes are the dollars that we pay to government to supply the services that are not or can not be provided through the free enterprise system. Taxes have been around since the beginning of organized societies. They come in various forms. Most common are income taxes both federal and local government. These taxes are assessed on the amount of income a person earns. Other taxes come in the form of user taxes; these taxes are imposed on the people that are using the goods being taxed, such as gas tax, alcohol tax, sales tax, and luxury taxes. Property taxes make up the major revenues for local and city governments. Furthering the burden of taxation are taxes that are attached to such bills as utility bills and rental expenses.
Tax Policies are very important in the United States Of America like to the people. People living in the United States have to do their taxes and they’re based on the Income they earn throughout the year. They make their taxes based on the policies of the President of the United States. Many different presidents have different taxes policies throughout their Presidency. John F Kennedy served as the 35th president of the Unites States and he had his own Tax policy. Also George W. Bush was the 43rd President of the United States who had his own tax Policy.
Standup for Kids is a registered 501(c)(3) non-profit organization founded in 1990 by Richard L. Koca who was inspired to begin outreach in 1987 when he saw a CBS broadcast of 48 hours documenting street kids in San Diego, California (StandUp For, 2014). He immediately began walking the streets of San Diego to identify homeless teens that he helped into shelters. His desire and passion to make a change in the lives of homeless youths led to the creation of the organization called StandUp for Kids.
Taxes are one of the most controversial, yet important factors that contribute to a successful and stable government. Taxes are defined as, "a contribution to state revenue, levied by the government on workers' income or profits or they are added to the costs of goods and services." These taxes help fund many government operations and they truly keep our country and government running. Taxes are often opposed and many people just don't see the need for them.
Taxation has always been a major controversy. Just like any major corporation, the government is constantly looking to raise revenue. The easiest and fairest way to do this is by taxing the people. However, how the people will be taxed is always an issue.
The four types of taxes this paper will discuss are income tax, sales tax, property tax, and user fees. Income tax was not permanently established until the 16th Amendment was passed in 1913. Most federal taxes had been previously derived from excise taxes on tobacco and alcohol and other consumer goods. The US Constitution, when written and still continues to, legitimize taxation in the United States through Article I, Section 8, that Congress has the power to lay and collect taxes, duties et al, pay the debts or provide for the common defense and general welfare of the United States (Cornell Law LII). Investopedia defines income tax as ‘a tax government(s) impose on financial income generated by all entities within their jurisdictions (Investopedia, 2014). Businesses and individuals are required to file an income tax return every year to determine if they owe taxes or qualify for a refund. That is determined by measuring the total income one earns to a designated tax rate, calculating one’s taxable income, which are some or all items of income reduced by other adjustments or expenses in that tax year. There are different subcategories of income tax; there is a federal income tax that is set by the federal government, apart from a few states, there is a state income tax that is imposed on their respective residents, as well as the possibility of there being local income tax ...
Death has a great impact on people's lives in such a way that they learn to value life or even live it to the fullest. But what happens to us after we die? Many religions have answered this question for us according to their faiths. Buddhism is a religion where Buddhists believe in the concept of death and reincarnation or rebirth. On the other hand, Christians believe that after you die you go into a period of dormancy and until the second coming of Jesus will you be woken up and decided your fate whether you go to heaven or hell according to how you have lived your life. Christianity teaches salvation from sin through Jesus Christ, the Son of God. Through Him, the gift of eternal life is also attained.
What is going to happen to us when we will die? Some people never considered what it could happen to them after life. For many people, death is a redoubtable event because they do not know what to expect after their death. However, other persons, such as religious people are conscious of what to expect after their death because of their beliefs. Each religion has different ideas and different ways of looking life. Death, therefore, is viewed by different religions in many ways. Although, different religions have a distinct conception of death, they all have something in common: they all give hope to people. Among all different religions in the world, four of the most common ones - Catholic, Jewish, Islamic, and Hindu- view death in different ways.
Taxation has evolved throughout history as a method of funding government functions. The US government began taxing its people by imposing tariffs on certain items such as liquor, tobacco, sugar, and legal documents. Currently, there are taxes on almost every function. The IRS regulates income tax laws, central appraisal districts control property tax values, and there is a state sales tax on most purchases across the country. Taxes are difficult, if not impossible, to avoid. Benjamin Franklin stated “'in this world nothing can be said to be certain, except death and taxes” (Isaacson 463). Revenues from property taxes are used to fund public schools, hospitals, and local governments. I will discuss the history of property taxes and compare the Texas property tax rate to the rest of the country. Property taxes are more efficient than income tax and a better way for local governments to collect revenue from taxpayers.