Introduction

The issue of whether gifts should be subject to income tax has been a subject of debate for a long time. Some people argue that gifts are a form of generosity and should not be taxed, while others believe that gifts should be treated as income and taxed accordingly. In this essay, I will provide my reasons on whether I agree with Adafulibu Amaweaki’s statement that “seeking to impose income tax on gifts is immoral. There should be no tax on generosity.”

Arguments in support of Adafulibu’s statement

Firstly, gifts are given out of generosity and should not be taxed. When someone gives a gift, they do so out of the goodness of their heart, and it is not fair to tax them for their generosity. Taxing gifts would discourage people from giving gifts, and this would have a negative impact on society. Gifts are an essential part of our culture, and they should be encouraged, not discouraged.

Secondly, gifts are not income. Income is money earned through work or investment, and gifts are not earned. They are given freely, and the recipient does not have to work for them. Taxing gifts as income would be unfair and would not reflect the true nature of gifts.

Thirdly, taxing gifts would be difficult to implement. It would be challenging to determine the value of gifts and to track them. It would also be challenging to determine who should pay the tax, the giver or the receiver. Taxing gifts would create a lot of administrative work and would be costly to implement.

Arguments against Adafulibu’s statement

On the other hand, some people argue that gifts should be taxed as income. Firstly, gifts can be used to avoid paying taxes. Some people may give gifts to avoid paying taxes on their income. Taxing gifts would prevent people from using gifts as a way to avoid paying taxes.

Secondly, gifts can be substantial and can have a significant impact on a person’s financial situation. Some gifts, such as houses and cars, can be worth a lot of money. Taxing gifts would ensure that people who receive substantial gifts pay their fair share of taxes.

Thirdly, taxing gifts would generate revenue for the government. The government needs revenue to provide essential services such as healthcare, education, and infrastructure. Taxing gifts would provide the government with additional revenue that could be used to fund these services.

Conclusion

In conclusion, the issue of whether gifts should be taxed as income is a complex one. While Adafulibu Amaweaki argues that taxing gifts is immoral and that there should be no tax on generosity, others believe that gifts should be taxed as income. While I agree with Adafulibu that gifts are given out of generosity and should not be taxed, I also believe that gifts can be used to avoid paying taxes and can have a significant impact on a person’s financial situation. Therefore, I believe that gifts should be taxed, but the tax should be reasonable and should not discourage people from giving gifts.