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The tax treatment of intergenerational wealth transfers

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  • CREMER, Helmuth
  • PESTIEAU, Pierre

Abstract

This paper to surveys the theoretical literature on wealth transfer taxation. The focus is normative: we are looking at the design of an optimal tax structure from the standpoint of both equity and efficiency. The gist of this survey is that the optimal design crucially depends on the assumed bequest motives. Alternative bequest motives are thus analyzed either in isolation or combined.

Suggested Citation

  • CREMER, Helmuth & PESTIEAU, Pierre, 2004. "The tax treatment of intergenerational wealth transfers," LIDAM Discussion Papers CORE 2004062, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2004062
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    Cited by:

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    2. Robin Boadway & Katherine Cuff, 2015. "Tax treatment of bequests when donor benefits are discounted," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 22(4), pages 604-634, August.
    3. Frank Cowell & Brian Nolan & Javier Olivera & Philippe Van Kerm, 2017. "Wealth, Top Incomes and Inequality," LWS Working papers 24, LIS Cross-National Data Center in Luxembourg.
    4. L. Arrondel & M. Roger & F. Savignac, 2014. "Wealth and Income in the Euro Area: Heterogeneity in Households’ Behaviours?," Working papers 497, Banque de France.
    5. Brunner Johann K., 2014. "Die Erbschaftsteuer – Bestandteil eines optimalen Steuersystems?," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 15(3), pages 199-218, October.
    6. Olivera, Javier, 2017. "The division of inter-vivos parental transfers in Europe," The Journal of the Economics of Ageing, Elsevier, vol. 9(C), pages 41-51.
    7. Kudła Janusz & Woźniak Rafał & Walczyk Konrad & Dudek Maciej & Kruszewski Robert, 2023. "Determinants of inheritance and gifts taxation in the European Union," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 59(3), pages 225-242, September.
    8. Christopher W. Kulp & Michael Kurtz & Charles Hunt & Matthew Velardi, 2023. "The distribution of wealth: an agent-based approach to examine the effect of estate taxation, skill inheritance, and the Carnegie Effect," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 18(2), pages 397-415, April.
    9. Belan Pascal & Moussault Erwan, 2020. "Inheritance Taxation in a Model with Intergenerational Time Transfers," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(1), pages 1-19, January.
    10. Pascal Belan & Erwan Moussault, 2021. "Long-run inheritance tax and capital income tax with rational altruism," Economics Bulletin, AccessEcon, vol. 41(1), pages 7182-7191.
    11. Stefan Jestl, 2021. "Inheritance tax regimes: a comparison," Public Sector Economics, Institute of Public Finance, vol. 45(3), pages 363-385.
    12. Esteban García-Miralles, 2017. "The crucial role of social welfare criteria for optimal inheritance taxation," Working Papers 1706, Banco de España.
    13. Ivo Bischoff & Nataliya Kusa, 2015. "Policy preferences for inheritance taxation," MAGKS Papers on Economics 201531, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    14. Ivo Bischoff & Nataliya Kusa, 2016. "Should wealth transfers be taxed? Citizens’ view on a fundamental question," MAGKS Papers on Economics 201636, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    15. Stefan Jestl, 2018. "Inheritance tax regimes," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 176, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    16. Ivo Bischoff & Nataliya Kusa, 2016. "Citizens‘ preferences for a tax exemption for caregiving heirs – an empirical analysis," MAGKS Papers on Economics 201621, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    17. Ivo Bischoff & Nataliya Kusa, 2017. "Citizens‘ preferences for a tax exemption for caregivers in inheritance taxation – an empirical analysis using German survey data," MAGKS Papers on Economics 201704, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    18. Janusz Kud³a & Robert Kruszewski & Maciej Dudek & Konrad Walczyk, 2023. "The impact of bequest taxation on savings and transfers," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 18(2), pages 333-365, June.

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    More about this item

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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