but that's just it...how could the wealth not be taxed once already...? it is!!! that money is taxed when it is earned in the first place...then when you save it and it earns interest, that interest is taxed as well...if you invest it in any way whatsoever, it is taxed again...also when you spend it, you pay sales tax...do not be fooled into believing that taxation equals caring about your fellow man...that is a suckers bet.
No it isn't GloriB....
Here is how...
1. the house he owns could have been bought for 100k....that money was taxed, but 50 years later, the estate is now worth 10 million...which means 9.9 million GAIN, which was not taxed...
2. the stocks he owns in what was his own company until he sold it to the public....many cases they keep 49% or close to it and sell the rest, this 49% is put in to his share of stocks in the company worth and let's say it was $10 dollars a share for 100,000 shares as his portion....he holds on to this stock for 30-50 years and when he dies the shares are now worth $100 bucks a share, the $1 million he initially invested is now $10,000,000....of which he never had to pay any capital gains tax, because he held on to them and did not sell them....so this means that $9 million of this was never taxed for the 30-50 years....
There are many situations similar to this in which taxes are not paid until the person dies and his estate is passed over....
The average joe does not ever get this kind of tax break, where their money earned and money GAINED are not taxed....
Things like the above examples are just some of the examples in which taxes are avoided by the very wealthy for decades, until death....and please note, they are just examples off the top of my head....
Giving the first $2 million of any estate as a deduction covers the things in which taxes were already paid.
This is how i understand it to be....
Care
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