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Yes, Yes, Yes. The answer to this is a resounding yes. The answer as to why the estate tax should be abolished is very simple. The person who has left the estate behind has already paid the taxes on the home and on all of the things in the home. When they lived in their house they paid the taxes for that house, why should the taxes be paid again just because that person has passed away. The taxes were already paid for, for that property. Now if they want to charge a capital gains tax based on the sale of that property then yes that would be acceptable. If someone decides to keep property that was willed to them they will have to pay property taxes on that property, why should they have to pay an estate tax as well.

Essentially all things that will be left to someone and are currently subjected to estate taxes are previously owned, and therefore have been previously taxed. So pretty much anything that is going to be left to anyone has already been taxed. The very concept of estate taxes is very similiar to double taxation. For example: If my grandmother leaves me a car that is paid for in full, she has already paid the taxes on that car. If I receive that car why should I pay taxes on that car. My grandmother has already paid the taxes on that vehicle. Having me pay taxes again for recieving it is like having taxes paid on the same vehicle twice. The car in this explanation is simply an example as such a simple item is not likely to be included in an estate tax scenario. As currently only the total taxable estates and lifetime gifts that exceed $1,000,000 will actually have to pay tax. In its current form, the estate tax only affects the wealthiest 2 percent of all Americans.

If my grandmother leaves me some money, she has already paid the taxes on that money when she earned it. She has also been paying the taxes on what ever interest she has earned from that money. Why should I have to pay a tax just to obtain something that the taxes have already been paid on. When the money becomes mine and I invest it I will have to pay taxes on my earnings from that money, I will also pay taxes on what ever I am spending it on if I choose to spend it rather than invest it. So I will eventually pay taxes on that money in one form or another, but I should not have to pay a tax for something that was given to me of which the taxes were already paid.

Plain and simple estate taxes are double taxation. The taxes on that money or property have already been paid for. Loved ones should not have to pay taxes again on them.

Learn more about this author, Rae Lynne Morvay.
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