Reference no: EM133328647

Case: Before they make their final decision(in an upcoming bill, Republican lawmakers) should bear in mind the estate tax is as economically inefficient as it is socially indefensible...The federal estate tax (often called the "death tax" by its detractors) has existed in its modern form since 1916. Essentially, it's a tax on the right to transfer property at one's death and applies to the market value of everything owned at that time including cash, stocks, bonds, buildings, trusts, vehicles, and even books...While it may seem like a reasonable means of raising revenue at the expense of folks who no longer need their money, it isn't. The estate tax typically totals less than 1 percent of annual federal tax revenue, largely because many Americans, through clever estate planning, are able to sidestep its grapes. Some Americans who lack the foresight or means to evade that tax are beleaguered by unproductive and exorbitant compliance costs...the collective compliance burden is roughly equal to the amount of revenue raised....(and) the tax tends to curb people's income as they enter their golden years...Ultimately, the estate tax compels Americans to waste their money on evasive estate planning and compliance costs, discourages them from pursuing profits in old age, and stymies America's unique culture dynamic" reading the excerpt above, respond to the prompts.

Question 1: Describe the author's ideology regarding this policy.

Question 2: In the context of this scenario, explain how ideological divisions could prevent the author's goals from being accomplished.

Question 3: Explain why the author might argue that taxpayers rights are violated with the estate tax policy.