http://news.yahoo.com/s/ap/us_tax_cutsObama agreed to exempt the first $5 million of a deceased person's estate, and to tax the rest at 35 percent. Congressional Democrats had expected a 45 percent tax rate on anything above $3.5 million. Without congressional action, the estate tax will revert to an even higher rate: 55 percent on estates valued above $1 million.
My question is this...(maybe it is a bit naive or stupid, but that is why I am asking)
Why does the govt deserve to take any estate tax at all? Taxes have already been paid on income, property, etc...so why is it okay to once again tax this money just because someone dies? I can't understand the justification for taking almost half the value of someone's possessions when they pass away. Perhaps someone can explain this to me.