re: IRS collected a gargantuan $7 billion estate tax from a single source, nobody knows who

quote:

---

Why do people act like that's illegal or immoral or some shite? Isn't sales tax "double taxation"? You've already paid income or capital gains tax on money you use to purchase goods and services that you are charged a sales tax for. Did the retailer not pay a inventory tax on some of the goods he charges sales tax on? Whatever gave people the idea that just because their money has been taxed once, it can't be taxed again?

---

Many of the examples being used involve different taxing authorities (state & local) or completely unrelated transactions (sales, inventory, etc) with 3rd parties.

The federal govt taxing income and then again inheritance has all the makings of double dipping. The inheriting party will be taxed on any subsequent gains or other taxable events once in their possession but the money has already been federally taxed prior to the original earner's death. The sheer act of passing already taxed wealth to another person and generating another taxable event in itself is established only because it's in the tax code. It is double dipping in my opinion.