re: #758 Aceofwhat?

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

Well, unearned income includes stuff like rental property and capital gains, so… I’m sorry, I’ve lost where you’re going with that bit.

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.

There is no tax at all on dying, though. There is a tax on the estate. That’s entirely avoidable as well. So I really don’t get your argument here; it seems to be an argument for the estate tax. If you don’t want to pay estate tax, then use the many mechanisms to reduce your estate below the level that it’ll take effect at, including giving gifts— and being taxed on them.

Estate tax is not inevitable, as easily shown by the 99.75% of people who paid zero estate tax when it was at its $3.5 million mark. So what do you mean by it being inevitable?

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.

I meant gifts while you were alive.

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!

I am.