What are real estate taxes?
real estate tax, also known as inheritance or death tax, are taxed by taxes on the estate of the deceased. They are one of the oldest forms of individual taxation in the Western world, and records indicate use from Aristotle. In the modern era, Britain and the US began to store real estate taxes in the mid -18th century.
Historically, real estate taxes were a controversial political problem. In the United States, they were initially stored to help fund the Independence War and then abolished rapidly. Subsequently, they were restored and canceled on at least three separate occasions. Last time they were introduced by Roosevelt administration during a major depression and in 2001 the US Congress launched the cancellation process, which will last until 2010. At that time, real estate tax will be automatically restored the following year unless the Congress passes legislation to cancel the permanent cancellation.
The use of real estate taxes is very different from ground to ground. On its peak during a large depotReal estate taxes in the United States were up to 70%. Since 2005, farms worth less than $ 1.5 million have been exempt from federal real estate taxes. Canada removed real estate taxes at the age of 80 and began to treat the payout as a normal income. Even in the European Union, which is a harmonization of working tax policy, there are big differences. For example, Sweden has no real estate taxes at all, while the United Kingdom has a 40% rate above the nominal value on all estates.
jurisdictions that impose real estate taxes generally allow exemption for charity legacy and heritage. Families can also create trusts as a way of minimizing the impact of real estate taxes. In order for individuals from avoiding real estate tax by simply distributing property during their lives, tax taxes are often imposed.
Real estate controversy from real estate is generally focused on their use as a tool of social policy. Unlike more direct FOsRem taxation can affect real estate taxes more generations of family. By making the prolonged family more difficult to accumulate long -term wealth, some political theorists claim that real estate taxes are an optimal form of taxation to maintain a wide middle class, which is in turn necessary for a strong, participant democracy. Others argue that family wealth is still growing and falling on their own and that real estate taxes are simply a malignant form of redistribution of wealth. In companies where real estate taxes are particularly high, critics often point to small family businesses as particularly hard. In order to pay real estate taxes, surviving family members can be forced to sell their companies or farms to larger corporations.