"Currently, not only are Americans taxed on what they earn, but those assets are taxed again when they are passed on to a loved one"
About this Quote
Mary Bono's quote critiques the tax system in the United States by highlighting what is viewed as a type of double taxation on made income and transferred possessions. The quote highlights two phases of taxation that are especially pertinent to American taxpayers: earnings tax and estate tax.
Firstly, Bono explains that Americans are taxed on their profits, which refers to the federal and state income taxes that people and corporations pay on their salaries, incomes, and other kinds of earnings. This aspect of the tax system recognizes to the majority of people, as earnings tax is a primary source of profits for federal governments, moneying civil services and infrastructure. The progressive nature of the income tax system in the U.S. is intended to ensure that individuals contribute to the general public coffers in a manner proportionate to their ways.
The second part of the quote attends to the estate tax, which is imposed on the transfer of the estate of a departed person before the assets are handed down to their successors. Bono identifies this tax as a secondary taxation of already-taxed earnings and properties. The estate tax has been a controversial concern in American politics, with critics arguing that it is unfair to tax people two times on the exact same possessions-- once when those assets are earned and once again when they are transferred after death. Supporters of the estate tax, nevertheless, see it as a tool for reducing wealth inequality and guaranteeing that the wealthiest people pay their fair share.
Bono's statement thus reflects a common issue amongst challengers of the estate tax, encapsulating the disappointment with what they perceive to be an extreme and troublesome tax system. Her review might resonate with those who think in minimizing federal government intervention in personal financial resources and advocate for tax reforms that promote specific wealth preservation. This point of view is frequently lined up with wider require simplifying the tax code and decreasing tax rates, especially on capital gains and estate transfers.
