Hey, it may well be an unfair tax to some. I'm just saying that it's not "double" taxing. Also, if you can't tax income given from a family member, does this mean that business transactions between family are untaxable? Significant monetary gifts between family members are untaxable? Are game show prizes considered income? Remember, any loophole will be exploited. It's a sticky situation. Generally, any money that comes into your possession is considered income.

Another area that people get mad about is medical bills/nursing home bills. Any medical bills, like nursing home care for instance (which adds up quick!), will come out of the estate (including the home and vehicles) before medicare will cover it. A persons estate can be completely wiped out in short order!