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The term death tax in the United States is a reference by opponents of the estate tax to the fact that a death must occur prior to a tax on the value of a deceased individual's assets is assessed. The reason that the term death is misleading and political (loaded term) is that a true death tax would logically tax all deaths, which the estate tax does not. The estate tax covers fewer than 2% of the estates at death because of the applicable exclusion available from the lifetime unified credit against federal gift and estate taxes. The tax is applicable to estates valued over $2,000,000 and the maximum rate for 2005 is 47% due to drop one point annually until 2007 when it will stay at 45% until 2009. Estate tax is a form of tax imposed in the United States upon the transfer of the property of the estate of a deceased person that is left to a living person or organization. ...
A tax (also known as a duty) is a financial charge or other levy imposed on an individual or a legal entity by a state or a functional equivalent of a state (e. ...
In business and accounting an asset is anything owned which can produce future economic benefit, whether in possession or by right to take possession, by a person or a group acting together, e. ...
A language construct, such as a word or a question, is said to be loaded if it carries meaning or implications beyond its strict definition (its denotation). ...
However misleading it may be, the term death tax is catchier than estate tax because you need to die first. This gives the term death tax a more striking and memorable feature not present in the term estate tax. Whereas the term estate is more ambiguous because rich people live in compounds that are commonly called estates and their is the legal system of dividing prsent and future interest in property law known as estates in land. The term derives from the fact that the current income tax system does not tax capital gains (except for the constructive sales rules when taxpayer owners of stocks write covered puts) until the taxpayer sells his property. In such a system, death can be viewed as a realization event for highly appreciated assets with unrealized gains. At death, the property would get a stepped-up basis but the entire value of the propery would be subjected to the estate tax, initiated only by the death of the estate's owner. A tax (also known as a duty) is a financial charge or other levy imposed on an individual or a legal entity by a state or a functional equivalent of a state (e. ...
The term was popularized by a famous memorandum written by Republican pollster Frank Luntz. He recommended that the party use the term death tax when referring to the estate tax, writing that the term death tax "kindled voter resentment in a way that inheritance tax and estate tax do not" [1]. Look up Memorandum in Wiktionary, the free dictionary A memorandum is a written form of communication most often employed in business environments. ...
The Republican Party, often called the GOP (for Grand Old Party, although one early citation described it as the Gallant Old Party) [1], is one of the two major political parties in the United States. ...
Opinion polls are surveys of opinion using sampling. ...
Frank Luntz graduated from the University of Pennsylvania with an honors Bachelor of Arts degree in history and political science, and was named a Thouron Fellow. ...
On June 22, 2006, the United States House of Representatives, voted to eliminate the estate tax. In the final vote for the bill, 43 Democrats joined 226 Republicans to eliminate the tax. Although 21% of the House Democrats voted for the bill, the partisan split was much more pronounced during procedural votes on the bill [2], [3]. Most Democrats claimed that the law would be giving some $800 million to the rich as opposed to helping the middle classes. The bill has yet to pass in the United States Senate. June 22 is the 173rd day of the year (174th in leap years) in the Gregorian Calendar, with 192 days remaining. ...
2006 (MMVI) is a common year starting on Sunday of the Gregorian calendar. ...
See also
Inheritance tax, also known in some countries outside the United States as a death duty and referred to as an estate tax within the U.S, is a form of tax levied upon the bequest that a person may make in their will to a living person or organisation. ...
The examples and perspective in this article or section may not represent a worldwide view. ...
Estate tax is a form of tax imposed in the United States upon the transfer of the property of the estate of a deceased person that is left to a living person or organization. ...
References - Michael Graetz and Ian Shapiro (2005), Death by a Thousand Cuts: The Fight over Taxing Inherited Wealth, Princeton
- Tax Law Changes for Gifts and Estates and Trusts: www.irs.gov/formspubs/article/0,,id=112782,00.html
Please wikify (format) this article as suggested in the Guide to layout and the Manual of Style. ...
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