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As I understand it, there is a proposal in Congress to totally repeal the Federal Estate Tax.
The Federal Estate Tax effects people who make gifts or devises, either during life or at death, in excess of $675,000 (not including the $10,000 annual exclusion).
Should we have an estate tax for the following situations:
(1) Taxpayer, a widower, leaves $3,000,000 to be divided among his children
(2) Taxpayer leaves $25,000,000,000 in trust for his family.
It seems to me that a moderate amount of wealth ($3,000,000) should not be subject to tax.
However, if we are talking about VAST wealth, I am concerned that, if not taxed at death, the money will compound to a degree that will allow a limited number of families to enjoy an unhealthy degree of influence over our nation.
For example, if Bill Gates' wealth is not taxed at his death, and the money is invested wisely, isn't it possible that in 40 years his family could be worth trillions of dollars?
How much influence would his family yield with that kind of wealth?
I think the estate tax should be retained for extremely large estates.
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