Essay --

The Estate Tax, known as the ‘death tax’ as well as the ‘anti-birth tax’, has been one of the most controversial parts of the United States tax code since its introduction in 1916 (Cagetti & De Nardi, 85). The estate tax is a tax imposed upon assets transferred at the time of the estate holder’s death. Those opposed have named it the â€Å"death tax† as they claim it hurts business activity as well as job creation. However, according to those in favor, the estate tax is an effective way to tax the richest few, and redistribute their wealth, thereby narrowing the gap of inequality. For those in favor, an abolition of the estate tax would impose a â€Å"birth tax† of sorts onto the majority of Americans who have not inherited a large sum of money (Cagetti & De Nardi, 87). The controversial estate tax in the United States is often questioned by many and has been challenged time and time again. However, more emphasis has typically been put o n particular aspects of the tax code where points of dispute are found. In order to fully understand the positions taken by those in favor of the estate tax, and those opposed, it is important to analyze the generality of the tax, as well as the details within it that have been contended over time. Some of the main aspects of the estate tax are taxability, deductions, and exemptions. These aspects are of importance in the context of the ongoing debate, as they most directly educate the tax to those transferring their estate at the time of death. Taxable ‘estate’ assets include those passed along through a will, for example (transfer of property), or the payments or insurances disbursed to beneficiaries of the deceased (IRS, Estate Tax). The IRS considers the transferred assets that are federally taxable t... ... decedent chose to do with their assets. Finally, the very existence of the estate tax puts a significant strain on the overall economy placing undue burdens not only on the rich or on family business, but also those who would be positively affected by the undistorted efforts of those individuals subjected to the tax (Hasset). The federal estate tax, coupled with the local state estate tax have very discouraging and negative effects on not only those taxed, by those that are not (Ebeling). Estate taxation is a highly controversial issue in the United states tax code, and has been appropriately debated from before and since its introduction in 1916. Wether its existence be referred to as the â€Å"death tax†, or its absence as the â€Å"birth tax†, those for and those against have long argued its fundamental validity and appropriateness, its effectiveness, and its contents.