re: #561 lawhawk

What’s the rationale for having a tax substantially higher than the top tax rate? /two can play that game

Well, my rationale would be that it’s unearned income, and that the floor for it is high enough that a very small percentage of US citizens will be affected by it. Including myself, of course.

The impetus for a lower tax rate is to facilitate easier transfers, minimize disruptions on transfers and avoid having to sell assets (like businesses, real estate) to meet estate tax obligations.

Why is avoiding assets having to be sold a good thing? And could you be clearer on how a low or non-existent estate tax makes for easier transfers and minimized disruptions?