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Estate tax is the transfer of the assets of a deceased. The tax applies to property that is transferred through a will according to state laws of intestacy. Other transfers that are subject to the tax can include those made through an intestate, estate or trust .
Arguments rise on whether the tax is a "good" tax or a "bad" tax?. various political criticism has emerged because of the estate tax for instance the Administration of George w. Bush opposes any tax on inheritance, and another which considers the tax legitimate and necessary, with little dialogue about where a reasonable rate would be set.William Gale and Joel Slemrod discuss reasons why Estate tax may not be that good.
1. Taxes imposed at death may have smaller disincentive effects on lifetime labor supply and saving than taxes that raise the same revenue (in present value terms) but are imposed during life.
2." If society does wish to tax lifetime transfers among adult households, it is difficult to see any time other than death at which to assess the total transfers made."
It may be through that a tax earned income but not inheritance is seen to promote classism
Another point is that drives a force behind support for the estate tax is the concept of equal opportunity as a basis for the social contract. To tax most types of economic transfers, but not large gifts or bequests, is seen to conflict with these concepts of political ethics.
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