Economics, Econometrics and Finance
4 years ago

Taxing inheritances can boost redistribution without hurting social welfare

RePEc: Research Papers in Economics
Optimal taxation of wealth transfers when bequests are motivated by joy of giving
Johann K. Brunner, Susanne Pech

Paper Summary

Inherited wealth affects how much people earn. Taxes on inheritances can help redistribute wealth, but they might also make people less likely to leave money to their kids. A tax on all spending (including gifts) can achieve the same redistribution without affecting people's decisions about giving money to their loved ones.

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