Nothing is certain in life except death and taxes. And these two unhappy events come together in the estate tax.
Essentially, the estate tax is the government’s way of collecting a share of a rich person’s assets after he or she dies. Some people believe this is only fair, since the rich person benefited from all the blessings of living in the U.S. and now should pay that forward as he or she leaves the planet.
Others view the estate tax as little more than highway robbery. Hence, the moniker “death tax,” which often is used as a synonym for the estate tax.
Before you form an opinion on the estate tax, you should know exactly what it is and how it works. This Khan Academy video gives you the basics. Watch the video, and draw your own conclusions.
What is your opinion of the estate tax? Let us know by commenting below or on our Facebook page.