Ding Dong, the witch is dead

[Happy Monkey]

Originally Posted by Undertoad

Then, you have to look at it from the original breadwinner's position. They (typically) earned the money in the economy; they (usually) did it by being productive and/or making good decisions that (often) grew the economy while the wealth was being used/invested. It's their money free and clear; they should be able to decide what to do with it, rather than to face one last time the gummint's slice.

That sounds like an argument against the gift tax as well.

And hey, the sales tax, too. The money you use to buy something was already taxed. Why should the government get one last slice just because you're picking up a new shirt?

Another thing to keep in mind is that an inheritance that is big enough to trigger the estate tax is usually primarily made up of tax-deferred money, on which tax has not been paid. The deferred tax is replaced with the estate tax, saving the inheritee lots of time, and possibly money.