Today, the government imposes a 40% estate tax over $5.45 million. Estate taxes help fund government programs, but it is only one policy tool that can make sure the wealthy pay their fair share. Most people have varying views on the estate tax’s existence; however, we can all agree on one thing—the estate tax you owe should not depend on the exact moment you die. In order to avoid this unfairness, there needs to be more stability in the tax code. Other countries’ estate tax stands at a median of 7%. Doing away with a high estate tax in the United States, however, will hurt those lawyers helping the rich skirt this tax.
See N. Gregory Mankiw, Why Taxing Fairly Means Not Taxing Inheritances, NY Times, September 9, 2016.
