Wednesday, July 5, 2006
Interesting op-ed in the Washington Post: Tax Inheritance, Not "Death," by Maya MacGuineas & Ian Davidoff:
Something is missing from the current debate over the hundred-year old estate tax. Instead of eliminating it or merely scaling it back to a point beyond recognition, we should instead be considering expanding the tax on money passed from one generation to the next....
A far better approach would be to tax people equivalently on all the income they receive, whether it be from earned or inherited income, by replacing the estate tax with an income tax on inheritances. Under such a tax, inheritances would be treated the same as other forms of earned income and taxed in the same manner.