Structure of the tax, repeal of the tax, and the reinstatement of the tax (Essay Sample)

Discussion Questions Week 9
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Discussion Question week 6
Response to question 1
The repeal of the estate tax is essentially a measure which would offer the richest 2 percent of Americans with a tax reduction of the estate tax. The most important argument that has been advanced in the repeal of the estate tax is that the repeal would serve to protect small businesses and farmers from burdensome, outdated, and unfair tax. The estate tax essentially impedes the capacity of small businesses in the United States to expand, and causes small businesses to employ less people. Most business owners would actually add more jobs in the country if the estate tax were removed. The estate tax makes it virtually not possible to pass family farms on to the next generation. In essence, the estate tax threatens small businesses and farms and taxes wealth which has already been taxed once as income whilst producing little real revenue.
Response to question 2
The Uniform Act permits the trustee to make adjustments between the income and the principle accounts whenever necessary under particular requirements. In essence, a trustee has powers to adjust. A trustee can adjust between income and principle to the extent the trustee deems essential/appropriate (i) if the trustee invests and manages the assets of the trust as a wise and cautious investor. (ii) If the terms of the trust specify the sum of money that may be distributed or has to be distributed to beneficiaries by referring to the income of the trust, and (iii) if the trustee finds out, after applying a specific section of the code, that the trustee is not ab...