Question
Supporters of the estate and gift tax argue that it provides progressivity in the federal tax system, provides a backstop to the individual income tax
Supporters of the estate and gift tax argue that it provides progressivity in the federal tax system, provides a backstop to the individual income tax and appropriately targets assets that are bestowed on heirs rather than assets earned through their hard work and effort. However, critics argue that the tax discourages savings, harms small businesses, taxes resources already subject to income taxes, and adds to the complexity to the tax system. Critics also suggest death is an inappropriate time to impose a tax.
Do you believe it is a necessary to generate income for the government? Or do you agree with the heritage foundation that the tax imposes an undue burden on small business owners? While this is often a political debate question, Please justify your answer with ACCOUNTING THEORY we have studied so far in this course.
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