Lobbying, family concerns and the lack of political support for estate taxation
AbstractWe provide an explanation for why estate taxation is surprisingly little used over the world, given the skewness of the estate distribution. Taxing estates implies meddling with intra-family decisions, which may be frown upon by many. At the same time, the concentration of estates means that a low proportion of the population stands to gain a lot by decreasing estate taxation. We provide an analytical model, together with numerical simulations, where agents bequeathing large estates make monetary contributions that are used to play up the salience of the encroachment aspects of estate taxation on family decisions in order to decrease its political support.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2013070.
Date of creation: 31 Dec 2013
Date of revision:
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estate taxation; family values; political economy; lobbying; Kantian equilibrium;
Other versions of this item:
- De Donder, Philippe & Pestieau, Pierre, 2013. "Lobbying, family concerns and the lack of political support for estate taxation," TSE Working Papers 13-454, Toulouse School of Economics (TSE).
- De Donder, Philippe & Pestieau, Pierre, 2013. "Lobbying, family concerns and the lack of political support for estate taxation," IDEI Working Papers 811, Institut d'Économie Industrielle (IDEI), Toulouse.
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-02-08 (All new papers)
- NEP-CDM-2014-02-08 (Collective Decision-Making)
- NEP-POL-2014-02-08 (Positive Political Economics)
- NEP-PUB-2014-02-08 (Public Finance)
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