The federal estate tax has long stood as a fiscal tool aimed at mitigating wealth concentration by taxing a portion of the assets bequeathed by an individual upon their death. The effect of the estate tax is best illustrated in an example of its absence.
Let’s use former New York Yankees baseball team owner George Steinbrenner as an example. Steinbrenner died in 2010 during a period where there was no federal estate tax. The rate was 45% the year prior and 55% the year after. Steinbrenner saved his inheritor sons at least $495 million dollars.
The Steinbrenner case underscores the ...
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