Inheritance tax boosts social welfare by leveling playing field for descendants.
The article explores how taxing inheritances can affect social welfare when parents leave money to their children out of love. They consider that some people start with more money than others, and how this impacts the benefits of an inheritance tax. The researchers find that introducing a tax on inheritances can either increase overall social welfare or have a mixed effect, depending on how people change their behavior and how much they care about helping their descendants.