Question

Estate tax is one of sources from which the Government collects revenue. In fact it is one of the significant sources of revenue for the Government. Thus, the proposal of abolishing estate tax entirely will adversely influence the revenue collection of the Government. Hence, there is no question of abolishing the tax completely. However, there is no questions about its effects on wealthy people and the hardship that often they have to face to pay estate taxes on their estate. Thus, the proposal of reducing the rate of estate tax and consider special cases where the estate owners are not in position to pay high amount of such taxes to wave or reduce their liabilities would be helpful to the estate owners. Thus, it should be maintained after necessary modifications to be considerate to the interests of all stakeholders of estate tax.

Answer 1

Estate taxes are very important for our government to collect. Not only for the government but it also contributes to the general public.

This can be understood as the facilities that the public are able to enjoy, the roads, the railways, various services and facilities, are provided by the government which is funded from the same money which we pay as tax

Therefore for the overall development of the country and its people, its important that taxes are being collected.

But we should never forget that who are paying these taxes, do they incur huge liabilities because of these or the tax burden is a heavy amount to be paid.

To irradicate this problem, the income being earned by every individual is made to be divided in various slabs according to the payment being received by them.

The one with higher income has to pay more taxes and the one with the lower income has to pay low taxes.

Now this system is very good at its level. It leads to less taxes paid by individuals who earn less and thus decreases their tax liability and they can also contribute to the government also.

This tax slab modification is the most important of all. This way government can arrange funds also for doing various projects and also tax burden is reduced.

For the people who are earning huge are capable of paying higher taxes.

Some special cases also should be considered like an individual who is the only earning person in his family or any person facing any medical problem or any of his family members facing an serious health issue can be kept little bit exempted to a level from this tax burden.

Likewise there would be many such special cases to be discovered to make the tax system stable.

Hence these are the ways to maintain tax liability on citizens and individuals. This would be in interest of all stakeholders of the estate tax.