The History of the Federal Estate Tax

There are many people who have ideological difficulties with the fairness of the federal estate tax. Where does this idea come from? Throughout your life, you pay taxes on your income, and this includes investment income, even though you make investments with assets that you have left over after paying income taxes. Of course, there are also property taxes, sales tax on your purchases, and somewhat hidden taxes on things like energy, communication, hospitality, gasoline, alcohol, tobacco, etc., etc., etc. Whatever you have left to pass along to your loved ones after you pass away is a remainder that you still have in your possession after paying all of these taxes throughout your life.  The people who feel that the estate tax is unfair wonder why your death should also be a taxable event. Memory Lane Apparently, this logic made sense to a majority of legislators until 1916. This is when the estate tax was first enacted. At first, people would give gifts to their loved ones to avoid t
http://norcalplanners.com/blog/estate-planning/the-history-of-the-federal-estate-tax/

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