RESPOND AND GIVE AN OPINION ABOUT THIS Occasionallythe estate tax, that essentiallyis a tax on asset transfers
Question:
RESPOND AND GIVE AN OPINION ABOUT THIS
Occasionallythe estate tax, that essentiallyis a tax on asset transfers upon death, is also attributed to as a "death tax." This is so that the transfer of wealth is taxed under the estate tax. The value of an individual's estate is taxed when that person passes away, and this tax is known as the estate tax. The value of all the decedent's assets must be taken into account when estimating the size of an estate. Real estate, stocks, bonds, life insurance plans, and other forms of expenditures are examples of these commodities. The estate itself is responsible for paying the estate tax instead ofthe recipients. The estate has to payany unpaid taxes before allof the decedent's possessionscan be transferred to the heirs. The individual who isin charge of calculating the total tax due and ensuring that it has been paidin full is the person in charge of the administrationof the inheritance.The executor of the estatemay require sellingoff property in order to collect themoney needed to satisfy thetax. The percentage of amount is deducted estate's that must pay an estate tax is inversely correlated with the estate's valuation. The Tax Policy Center forecasts that in 2020, just 0.6% of estates were subject to the federal estate tax. It may be deduced from the fact that a staggering 99.4% of estates were excused from repaying the tax. Because the situation differs from state to state, there is no universal remedy. A handful of states have an estate tax of their own, which is different from the federal estate tax. In some states, there is a state tax, but not in other. To determine, whether or not a state tax is relevant, it is important to conduct study on the legislation controlling the estate tax in your state.
If so, is the state government happy about the possibility of eliminating the tax?
The response to this query will vary depending on the condition. There is a likelihood that particular states may welcome the idea of getting away with the estate tax, while other states may not. There is a potential that states that rely on the revenue that is created by the estate tax may reject the removal of the tax. Rich individuals shouldn't be able to leave large quantities of fundsto their descendantstax-free after they pass away, which is why the estate tax was created. The estate tax serves two purposes: it ensures that wealthy individuals contributethe correct amountof taxes and that the money raised by these taxes is used to fund crucial social programs.
Do you agree or disagree with the idea of elimination of the tax, and why?
Each person's response to this issuewill depend on their own point of perspective.It's probable that some people support the idea of abolishing the estate tax sincethey believe it to be an unfair levy that disproportionately affects the wealthy. Some people believe that the estate tax is an important source of revenue for the government and that it helps pay for important social initiatives, hence they do not support the idea of abolishing it. These folks can be viewed as a minority.
CITE
The Legal Environment of Business A Critical Thinking Approach
ISBN: 978-0132664844
6th Edition
Authors: Nancy K Kubasek, Bartley A Brennan, M Neil Browne