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Estate Tax
Estate tax is the branch of tax law that relate to the taxation of the assets of an individual on their death.
Estate tax is also known as inheritance tax. The primary difference is that in the case of estate tax, the estate is taxed. In the case of inheritance tax, the beneficiary is taxed. Generally, some measure of the size of the estate is being taxed. In some jurisidictions it is the amount of the capital gains that is being taxed rather than the size of the estate. For example, if the deceased oowned some shares that has increased in value from $200,000 to $300,000 the tax would be on the $100,000 increase rather than the $300,000 value of the shares. The theory behind this is that the individual likely paid tax on the $200,000 that went into the investment in the first place, for example, if the $200,000 came from income.

Tax law is a branch of law that encompasses a number of different matters regarding how the state taxes citizens and so forth. What is interesting about tax law is how complex it is. The complexity arises as the state uses tax law as a means of social engineering. In other words, the state uses tax law to encourage certain behavior and to discourage certain other behavior.

Further, each level of government has its own revenue requirements and its own social agenda.

Taxes arise at the federal, state and local levels. Taxes are usually based on some activity or circumstance. These include in respect to net worth (wealth tax), the ownership of a home (property tax), the earning of income (income tax), the sale of property (capital gains tax), the purchase of goods or services (sales tax), switching homes (land transfer tax), movement (fuel surcharges), the storing of information (blank media tax), the transporation of goods (import taxes), the giving of goods and services (gift taxes), dying (succession tax) and having fun (sin tax on alcohol, for instance). Merely being in conflict with the state can give rise to tax (expropriation). Some jurisdictions have taxes that arise merely if one is alive, a head or capitation tax (while often behind a tax is a social agenda to reduce a particular activity, such as the case with sin taxes, we are sure that is not the case with this tax!!).

As well, taxes can depend on legal status, such as being an individual, a corporation or having a family (the additional tax burden that arises if the family decides to raise the children itself).

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