Monday, December 13, 2010
THE ESTATE TAX SHOULD BE ELIMINATED
Why do we need to tax estates? the government gets less than 1% of their tax revenue from estate taxes, even when they were at the 45% level. What is so bad about people inheriting money from a deceased person that has a significant estate or a business. In some cases when the estate is a small business, the business usually has to be sold to pay the taxes. This usually causes a loss of jobs for employees and the loss of a stable business income for the family. This loss to the family and the workers is not just a one-time loss. It can cause lifetime disruption for the employees and the family, not to speak of the loss of a good business in the community. That restaurant you love might close. Your favorite bar closes. Your favorite mom and pop grocery store is gone. But the large businesses that are privately owned have ways to avoid the estate taxes. Another argument against estate taxes is that they tend to level the financial condition of the people so that people who otherwise might have inherited a little money, instead struggle just to survive, and possibly eventually going on the public dole when they can no longer earn their living. So the estate tax is actually counter-productive to the government's financial situation. The fear merchants will say, "But you can't let families gain so much financial power by inheriting a lot of money." So what, how about the Kennedy's? They have really been an important family in our history with great accomplishments and contributions to our country! How about Bill Gates and Warren Buffet with their very large contributions to charity? Isn't that great? So what is wrong with having more rich people or just affluent people in the USA and fewer people on the public dole?
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