In reply to the letter by Paul Cannon in the Sept. 27 issue:
Mr. Cannon does not mention the state in which his deceased friend had lived, which is perplexing as he indicates a tax rate of more than 15 percent on an estate of $150,000. The lowest estate amount taxable is $330,333 in Ohio. In New York state, estates with a net value of less than $1 million are not subject to any tax. Estates over $1 million are taxed at a graduated rate starting at 5.085 percent up to 16 percent on the amount over $10,040,000.
We should keep in mind that in most large estates and in all “mega” estates taxes have never been paid on them; the major amount is due to capital appreciation. By eliminating the estate tax, we would be allowing these millions or billions of dollars of assets to pass endlessly to future generations without ever being taxed. The better solution is to raise the limit of an estate for the estate tax.
Also, there is no such thing as a “Death Tax.” There is an estate tax and an inheritance tax. “Death Tax” is a derogatory term used by those who oppose the estate tax.
RICHARD VANCE
Greece
In reply to the letter by Paul Cannon in the Sept. 27 issue:
Mr. Cannon does not mention the state in which his deceased friend had lived, which is perplexing as he indicates a tax rate of more than 15 percent on an estate of $150,000. The lowest estate amount taxable is $330,333 in Ohio. In New York state, estates with a net value of less than $1 million are not subject to any tax. Estates over $1 million are taxed at a graduated rate starting at 5.085 percent up to 16 percent on the amount over $10,040,000.
We should keep in mind that in most large estates and in all “mega” estates taxes have never been paid on them; the major amount is due to capital appreciation. By eliminating the estate tax, we would be allowing these millions or billions of dollars of assets to pass endlessly to future generations without ever being taxed. The better solution is to raise the limit of an estate for the estate tax.
Also, there is no such thing as a “Death Tax.” There is an estate tax and an inheritance tax. “Death Tax” is a derogatory term used by those who oppose the estate tax.
RICHARD VANCE
Greece
