re: #755 Obdicut

Which dictionary? Which definition in the dictionary?

The definition of “income” as something earned, as opposed to “gift”, which is not. Unearned income is a gift.

I know that you want that. I’m asking why it’s fair to let you to, whereas if I, once I have paid my fair share of taxes on my income, want to purchase something, I have to pay taxes on that purchase.

Because, as i said earlier, you can choose to avoid most purchases. So there is a tax on a discretionary behavior…as opposed to dying, which is not discretionary. I can choose not to invest (and avoid capital gains), i can choose not to live in a house (and avoid property taxes), etc…but i can’t choose not to die. Eventually i have to give my things to someone else. That’s one argument for why it’s fair. If you WANT to purchase something, you have to pay taxes on it. At least you can factor in the taxes as part of your decision to make a purchase (again, i’m generalizing, of course we purchase necessities but even then the sales tax can be minimized by purchasing inexpensive necessities). You can alter when and what you purchase to pay less sales tax if you choose. Death is not a choice, ergo the tax is inherently less fair.

Yeah, but it’s a lot more logically true to say that the transaction is being taxed, not the estate. The common sense of what’s occurring is that the inheritors are receiving money and assets that they did not have before, and that that transaction is taxed.

Untrue. The estate is taxed at a rate that is independent of the gifts. Whether I have one child or fifteen amongst whom i wish to spread my estate, the tax is first applied to the estate, then the remainder is passed along. If the taxation were a function of the transaction, it would apply on a transaction basis.

Don’t worry, i’m not upset. I am a little bit frustrated at the nitpicking between assertions and arguments. That’s counterproductive. Just tell me where you disagree and why and I’ll do my best to do the same!