re: IRS collected a gargantuan $7 billion estate tax from a single source, nobody knows who

quote:

---

Many of the examples being used involve different taxing authorities (state & local) or completely unrelated transactions (sales, inventory, etc) with 3rd parties.

The federal govt taxing income and then again inheritance has all the makings of double dipping. The inheriting party will be taxed on any subsequent gains or other taxable events once in their possession but the money has already been federally taxed prior to the original earner's death. The sheer act of passing already taxed wealth to another person and generating another taxable event in itself is established only because it's in the tax code. It is double dipping in my opinion.

---

The examples given demonstrate that taxes typically involve transfer of property including money: sales taxes, gift taxes, property taxes, income taxes, estate taxes.

quote:

---

The sheer act of passing already taxed wealth to another person and generating another taxable event in itself is established only because it's in the tax code. It is double dipping in my opinion.

---

This statement describes income tax as easily as it describes estate tax.

The money received by the employee like the money received by the beneficiary/heir has likely been taxed before they received it. The employee has worked for the money received. The beneficiary/heir is not required to work to earn the money received. Why should the employee pay a tax and the beneficiary/heir should not?

Again, how the taxes are spent is a different issue than how the taxes are generated.