The federal estate tax redistributes wealth in two ways: by encouraging charitable giving, which reduces the taxable estate, and by heavily taxing extraordinarily large estates and using the proceeds to fund government programs. Repealing the estate tax would create quizlit

Question

Social Studies

Vivian Blevins

2 March, 13:40

The federal estate tax redistributes wealth in two ways: by encouraging charitable giving, which reduces the taxable estate, and by heavily taxing extraordinarily large estates and using the proceeds to fund government programs. Repealing the estate tax would create quizlit

+2

Answers (2)

Know the Answer?

Grant · Answer 1

Answer: The correct answer is : The revocation of the wealth tax would create or give a discouragement or a lack of incentive to work, but at the same time it allows those people who have worked very hard and have been able to save being able to pass this wealth to their respective heirs.

Karsyn Rodgers · Answer 2

Creates less capital for investment by the government

Explanation:

This would reduce charitable donations and thereby causing the tilt of the wealth distribution towards some people in the top echelon thereby making the government fall deeper into borrowing.