Thus state governments benefit. The giver is responsible for all gift taxes. Rates depend on the relationship of giver to recipient. Reasons for Change Estate taxes are unfair and constitute double taxation. It is unfair to tax one's life earnings for a second time, robbing them in death of the family economic security they worked throughout their lives to provide.
Estate taxes are fiscally and economically counterproductive.
Less than 1.5 percent of federal revenues come from the estate tax. Experts estimate that anywhere from 65 percent to 100 percent of that revenue is offset by administrative and compliance expenses. Fiscally, it is an IRS agent full employment program that punishes grieving families while providing minimal benefit to the government treasury after expenses and creating economic inefficiency and loss. Estate taxes affect nearly every American. In addition to the millions of Americans who are directly affected by the death tax, there are millions more who are indirectly affected as thousands of small businesses refuse to grow and invest in new jobs for fear of the devastating tax impact of a principle's death.