Research Of The Estate And Gift Tax System

Estate tax has been imposed for a long time. Since those who are levied are often the rich, estate tax is also called "rich tax", which has the function of the reallocation of fortune. However, after the United States Senate and House of Representatives passed a reform act abolishing estate tax in May 2000, hot topics like "Whether estate and gift taxes should be abolished" and "Whether the rate of estate and gift taxes should be adjusted downwards" are always under discussion both in the USA and Taiwan area without any final conclusion so far. Those who support imposition of estate and gift taxes and high tax rates are from the angle of "principle of equity and justice"; those who oppose it consider that it impairs economic development severely. Therefore, the article plans to compare the importance of "social justice" and "economic development". Is there any estate or gift tax system that not only maintains social justice but also takes account of economic development, to the satisfaction of both parties? We hope to start with the experience of imposition of estate and gift tax in the Taiwan area, through a comprehensive survey of modification and laws and decrees of past years, and a landscape review by introducing estate and gift tax systems in the USA, Britain and Japan, and make an analysis of exempted tax items, deduction regulation and tax rate structure. Thus we may make a review of the current estate and gift tax system and set forward some suggestions for reform.Emphasis of research can be summarized as follows:1. Estate tax is only levied upon 5% of deceased and heavy tax is levied upon only 2% of them. Estate tax is really a good system with considerate intention of covering the shortage of income tax, preventing high concentration of fortune and expansion of the rich-poor gap.2. With high development of economics, the prevalence of utilitarianism and fadeout of ethics and morality, traditional arrangement of estate tax can not satisfy a diversified modern society. So "trust" emerges as the times require, with functions of tax saving, perpetual asset management, and preservation. Trust has been a widespread way of asset and financial management in western countries for many years. It is also the hottest topic in Taiwan in recent years.3. " Polish our own jade by stones of other mountains". We hope that Mainland China will learn from other's strong points to offset its own weaknesses when beginning to levy such tax, and establish the best estate and gift tax system most appropriate to the conditions of the nation.