death and taxes - this money that is something I am not...

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Death and Taxes From the first time I looked at this assignment I was completely confused as to what the table was trying to tell me. In the area above the P0 is what the heir (consumer) would get before the Taxes taken out by the government (producer). Above the P1 is the area of which would be received after the taxes. Now if the tax were to be imposed on himself the area D,E, and F represent what area would be before taxes. The area labeled F is after taxes. According to the ability-to-pay principle an individual who is most able to bear the burden of the tax should pay the tax. Most people like to pass taxes on to someone else. But who, really wants to pay taxes? Therefore, if there is an inheritance tax to be paid I do believe that responsibility falls on the family after all they are the ones who get the money. But then I wonder what the person who died paid for all their life, so, is the government charging twice on
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Unformatted text preview: this money that is something I am not sure how it works. I do believe this case does fall into this Category. It seems to me that under this principle deals with mostly in highway and airports, along with food and clothing taxes. Not an inheritance tax. Over the years I have learned from the passing of family members that it is best to plan ahead and that includes a plan for taxes. Without proper tax planning, many people can end up leaving a huge tax liability on their death, considerably reducing the value of the estate passing to chosen beneficiaries. The person who physically pays the tax is not necessarily the person who bears the burden of the tax. It depends on who is best able to change their behavior in response to the tax? The percentage of the tax paid by the supplier and the consumer is independent of who actually makes the physical payment of the tax....
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death and taxes - this money that is something I am not...

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