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Death tax unfairness has been argued by many. Opponents of the tax believe that it weakens the foundation of the nation, especially since the United States is known to reward hard work and provide basic fairness to all its citizens. It is also believed that this tax is discriminatory, unfair and burdensome. Above all, death tax affects the country’s economy and destroys jobs.
It has been seen that many small businesses are drastically affected by death tax. Many times, these businesses have to layoff people or close shop in order to pay death tax, thus leading to loss of jobs and reducing contribution to the economy of the nation.
However, the Internal Revenue Service argues that just 2 percent of Americans pay death tax with highest rate for the tax being 45 percent. However, what makes it worse is that one is forced to pay death tax even though the money has already been taxed once. A report from the Congress’ Joint Economic Committee states that 1.4 percent of the total federal revenue comes from death tax but this amount is offset by the collect cost and compliance.
Businesses and individuals have to spend thousands of dollars each year to prepare for death tax, and this considered to be utter waste of money when it could have been used for employee benefits, creating new jobs, economic growth or making charitable donations.
Death tax unfairness is a hot topic in the US where many feel that hard working small business people should not be penalized through this tax. In addition, it is double taxation as most assets of the deceased person have been already tax during his or her lifetime.
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