I was having a conversation with a friend today that involved real estate and eventually we ended up on the topic of inheritance tax and taxation in general. My knowledge of taxes is a bit inadequate (other than the fact that i pay what always seems too many) so feel free to help me become more informed. Here's something i'm trying to understand. When you work and recieve a paycheck you're taxed around 40% for Soc. Security, etc. When you buy something with that already taxed income you're taxed again at a retailer. Same goes when you pay bills. You're hit with Fed./State "charges." Then when you finally, if ever, recieve Soc. Security income, thats taxed as well. And then when you die you pay (or rather, those closest to you) pay a large inheritance tax. Maybe i'm wrong, but aren't we being taxed 4 times in a row?
1. Paycheck
2. Goods,Services, and Property
3. Soc. Security (which we were taxed for in the paycheck)
4. Inheritance tax
This either just doesn't seem fair or its a very inefficient way to do things. I admit, my knowledge is unfortunately limited in this area so anyone with more knowledge please feel free to chime in. How many times is it okay to pay taxes on money you've worked hard to earn?
1. Paycheck
2. Goods,Services, and Property
3. Soc. Security (which we were taxed for in the paycheck)
4. Inheritance tax
This either just doesn't seem fair or its a very inefficient way to do things. I admit, my knowledge is unfortunately limited in this area so anyone with more knowledge please feel free to chime in. How many times is it okay to pay taxes on money you've worked hard to earn?