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re: I don't understand inheritance tax
Posted on 1/19/16 at 10:00 am to mailman
Posted on 1/19/16 at 10:00 am to mailman
quote:
I don't understand stand why money should be taxed if it's transferred between two people and the point of raising the tax.
The economic theory is that the money is sitting idle and not contributing to the growth of the economy. You being idle rich does no good for anyone else. The tax therefore encourages you to do other things with your money such as invest or create trusts, etc.
In reality, the government has an insatiable appetite for taxation income. More is never enough. And it cannot tax money that does not move. So it has decided to grab a piece of the pie as it moves to your heirs.
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