New Delhi: Congress’s wealth distribution policy remark in its manifesto has become a big political controversy around the country. Congress has mentioned this in its manifesto for the Lok Sabha elections which are being held this year.
Meanwhile, Sam Pitroda the chairperson of the Indian Overseas Congress on Wednesday mentioned about the inheritance tax which exists in the United States and called it an ‘interesting idea’. Due to his remarks, Pitroda has faced criticism from the BJP and the Congress party has also distanced itself from his statement. As per a news report, while explaining the inheritance tax Pitroda said that if a person has $100 million worth of wealth and when the person dies he can only transfer probably 45% to his children, 55% is grabbed by the government.
He also added that In India there are no such provisions and he said that if an individual is worth 10 billion and passes away, their children inherit the entire sum, leaving nothing for the public. “These are the discussions and debates that people will need to engage in”, he added. In the US, only six states impose an inheritance tax.
What Is The Inheritance Tax In The US?
In the US the government levies two kinds of taxes which are the estate and the inheritance tax. Around 12 states impose taxes, while six states in the US enforce inheritance tax. The estate tax commonly known as “death” tax, is a federal tax applied to property transfers following the owner’s death. This tax, which varies from 18% to 40%, is due by the estate rather than the beneficiaries.
Individuals who inherit money, property, or other possessions, however, are subject to inheritance tax. It only comes into play when someone passes away and transfers assets in states where inheritance taxes are in place, regardless of where the beneficiary resides.
