Question

What are 2 arguments FOR the estate and gift tax and 2 arguments AGANIST the estate and gift tax.

Answer 1

Arguments FOR the estate and gift tax

1. As it increases lawyer and accounting fees, it also helps in increasing charitable giving. Eliminating estate and gift tax will reduce charitable giving by 12%.
2. The role played by inheritance in economic inequality increases the gap between rich and poor. A large inheritance do not turn every heir in a large high-class loafer.

Arguments AGAINST the estate and gift tax

1. It is a tax on thrift. It is worse to punish any family, rich or poor from this sort of planning on these taxes.

2. It is common for many families to avoid tax by gifting money to children, grandchildren, spouses, taking deduction for larger contributions and showing aasets in trusts. It encoa lot of unproductive work hiding assets from federal government.