>>If, however, you spend it all on legal things, say booze and expensive toys, it will be taxed again.
>
>Do the feds have some secret tax I am not aware of?
No, but whoever you pay for those things will pay taxes. How is that different from tax being paid when the money goes from you to your heirs?
>>>But if I choose to live frugally because I want to leave a large estate to my kids (celebutards or not), that deserves to be taxed twice?
>>>What horrible thing would I have to do to deserve to be taxed 3 times?
>
>>Where do yo get three times here?
>
>If taxing my money two times is ok, why not three?
>
>Seriously, is there any limiting principle?
Yes, the money is taxed each time it changes hands.
Tamar
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