Originally posted by: piasabird
Repeal the Death Tax for small businesses and farmers.
Doing this only for farms would be a big benefit. Farmers have to save enough tax money up over their entire life just to pay the enheritance tax.
Or at least raising the cap a bit.
I'm sure that $2M was quite a lot when the inheritance tax was passed, but it's not so uncommon anymore, especially when talking about inheriting a business / farm / etc... with a lot of assets. I'd say $10M - $20M as a base, with an annual increase that is based on the rate of inflation would be a good start. Anything over that you pay taxes on.
Possibly also add a progressive system to it: say the first $20M is tax free, between $20 and $50M you pay 5%, between 50M - 250M you pay 15%, between 250M - 1B, you pay 25%, over $1B you pay 50% (obviously all hard dollar values would also be inflation-adjusted as mentioned above, percentages would stay the same).
so for a theoretical $2B inheritance you would get:
(1.00) * ($20M) = $20.0M
+ (0.916667) * ($50M - $20M) = $27.5M
+ (0.75) * ($250M - $50M) = $150.0M
+ (0.666667) * ($1000M - $250M) = $500.0M
+ (0.50) * ($2000M - $1000M) = $500M
=> 20 + 27.5 + 150 + 500 + 500 = 1197.5M
government gets 802.5M.
Completely fair if you ask me.