Re: how to compare living standards


"William F Hummel" <wfhummel@xxxxxxxxxxx> wrote i

What does all this mean? The total estate and gift tax collected
obviously depends on the distribution of all estate values. The total
value of estates in the region of $5 million very likely exceeds that
of estates in the $100 million region. A lot of estates valued in the
vicinity of the exemption limit can explain why there would be a low
average tax rate.


Correct. But arithmetic is not "principle", and principled people like our
friend Jim don't care why the average rate is low. They prefer to point to
a high-sounding marginal rate, and then talk about "unfairness" as if the
marginal rate applies from the first dollar -- whether the subject is estate
tax or income tax.

BTW, if I have $100 million to bequeath, and I choose to create a
"foundation" in order to avoid estate tax, do my heirs get that $100 million
to play with just as if I had made a straight bequest?

-- TP


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