Kentucky generates about $50 million in revenue annually by taxing money or property bequeathed to a deceased person’s relatives, though not close relatives like children or a spouse — a levy that a state legislative committee is considering eliminating altogether.
Like many opponents of the tax, the head of the libertarian-leaning Bluegrass Institute says government shouldn’t be producing revenue off the efforts of people who generated the wealth in the first place because “they’ve already . . . paid the taxes on it during their lifetime,” Jim Waters told WFPL.
Except, that’s often not true. Consider one of the biggest sources of family wealth: unrealized gains on stocks, and the following example: Continue reading “Reality check: Debunking a canard about Kentucky’s endangered inheritance tax”