Its a tax on *personal* wealth
I don't buy the business shit. Incorporate if its a problem and gift the stock.
Furthermore, the tax only occurrs once per generation and doesn't kick in until you're worth $2 million buck AFTER all expenses, charitable bequests, and bequests to spouse.
"The estate tax is not a death tax and it is not paid by the dead. It is a tax on the transfer of wealth and is paid by the heirs; it comes out of the estate before distribution. Currrently, the tax applies only to taxable estates over $1.5 million, that is, estates over $1.5 million after debts, final expenses, charitable bequests and bequests to a spouse have been subtracted. Because an unlimited amount may be transferred tax free to a spouse, the tax is typically paid only once a generation, when the second spouse dies. "
Even Wm Gates II thinks repeal of the estate tax is BS.
"Special rules allow family farms and businesses to further reduce or defer estate taxes. Of the 18,800 estates that filed returns in 2003 (out of approximately 2.4 million people who died), only 440 consisted primarily of family farms or businesses. (Center for Budget Policies and Priorities.) At the $ 2 million exemption level which takes effect next year, this will drop to 210 estates. Thus, the idea that large numbers of families will be forced to sell farms or businesses to pay the estate tax is a myth."
My source: [link|http://thenexthurrah.typepad.com/the_next_hurrah/2005/09/why_america_nee.html|http://thenexthurrah..._america_nee.html]
Perhaps your example is one of the edge cases. So what? You can't please everybody all the time. Nothing will be fair to everybody. Looks like a pretty small set of victims. I'm OK with it.
