12. The Sensible Estate Tax Act of 2016 slashes the estate tax exemption to $3.5 million and...

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12. The Sensible Estate Tax Act of 2016 slashes the estate tax exemption to $3.5 million and raises the estate tax rate to 45%. Small and family businesses can be particularly hard hit. Family Business Defense Council calculated an effective death tax rate of 57%, and with state inheritance taxes the combined tax could be as high as 68%. What do you think are the implications on equity and efficiency of imposing these high taxes?

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Microeconomics

ISBN: 9781292214351

2nd Global Edition

Authors: Daron Acemoglu, David Laibson, John List

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