I was driving, the other day, listening to NPR and they were discussing the estate tax proposed modifications, which got me to thinking.
- I work 60 hrs a week and make $100K (my money) and pay income taxes on that, both to the Feds and the State.
- Using the remaining of my money (which I've already paid taxes on), I buy clothes, a car, etc. and I pay sales taxes on that.
- I also need to buy gas for my car, and I pay sales and gasoline taxes on that.
- Since I am privileged to own a car, I also have the privilege of paying annual excise tax on the car.
- From the remaining balance of my money I put some aside and bought a house. I get rewarded by having to pay real estate taxes on that.
- There was just a bit of money left, so I decided to take my wife away for 2 days, I had to pay all sorts of government fees (taxes) on the airline tickets and again a number of taxes on my hotel bill.
- During the weekend we went out to eat.... you guessed it, I had to pay meals taxes.
All these taxes (and many others I can't think of, at this moment) are levied against my $100K a year. Then, a few years from now (hopefully, many years from no), I die and leave this nice house and whatever money I had saved to my children. Aha, not so fast, they have to now pay estate tax. So, I am being penalized for leaving something to my children? How does that make sense?
And I know, people will say, not the first $500K or whatever, or it's meant to catch people leaving tens of millions, but that is so irrelevant! I can see if the house was stolen or the government gave it to me, of somehow I had found the money in my savings account, but darn it, I worked very hard for it and paid taxes on what I made along the way. Why this additional estate tax? Doesn't make sense.
