Economics of estate taxation: a brief review of theory and evidence
AbstractThis paper provides a non-technical overview of the economic arguments related to the desirability of transfer taxation and a summary of empirical evidence surrounding these issues. Understanding optimal transfer taxation throughout the distribution requires understanding the nature of a bequest motive, a topic on which there is little consensus. However, I argue that progress still can be made on the question of desirability and optimal level of estate taxation at the top of the distribution, because interpersonal externalities implied by the presence of bequest motive are irrelevant from the welfare point of view when the focus is on the wealthy. I also examine the role of negative externalities from wealth concentration in providing justification for considering this type of taxation.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 15741.
Date of creation: Feb 2010
Date of revision:
Publication status: published as "Economics of estate taxation: A brief review of theory and evidence," Tax Law Review, 2009, 63(1), 139-157.
Note: AG ME PE
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Find related papers by JEL classification:
- D6 - Microeconomics - - Welfare Economics
- D9 - Microeconomics - - Intertemporal Choice
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:CitEc Project, subscribe to its RSS feed for this item.
- Brülhart, Marius & Parchet, Raphaël, 2014.
"Alleged tax competition: The mysterious death of bequest taxes in Switzerland,"
Journal of Public Economics,
Elsevier, vol. 111(C), pages 63-78.
- Brülhart, Marius & Parchet, Raphaël, 2011. "Alleged Tax Competition: The Mysterious Death of Bequest Taxes in Switzerland," CEPR Discussion Papers 8665, C.E.P.R. Discussion Papers.
- Elinder Mikael & Erixson Oscar & Ohlsson Henry, 2012.
"The Impact of Inheritances on Heirs' Labor and Capital Income,"
The B.E. Journal of Economic Analysis & Policy,
De Gruyter, vol. 12(1), pages 1-37, December.
- Elinder, Mikael & Erixson, Oscar & Ohlsson, Henry, 2011. "Carnegie visits Nobel: Do inheritances affect labor and capital income?," Working Paper Series 2011:5, Uppsala University, Department of Economics.
- Elinder, Mikael & Erixson, Oscar & Ohlsson, Henry, 2010. "The Effect of Inheritance Receipt on Labor and Capital Income: Evidence from Swedish Panel Data," Working Paper Series, Center for Fiscal Studies 2010:3, Uppsala University, Department of Economics.
- Andrea Filippo Presbitero & Agnese Sacchi & Alberto Zazzaro, 2014. "Property Tax and Fiscal Discipline in OECD Countries," Mo.Fi.R. Working Papers 95, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
- Jappelli, T. & Padula, M. & Pica, G., 2011. "GINI DP 21: Transfer Taxes and Inequality," GINI Discussion Papers 21, AIAS, Amsterdam Institute for Advanced Labour Studies.
- Johann K. Brunner & Susanne Pech, 2011.
"Optimal taxation of wealth transfers when bequests are motivated by joy of giving,"
Economics working papers
2011-12, Department of Economics, Johannes Kepler University Linz, Austria.
- Brunner Johann K. & Pech Susanne, 2012. "Optimal Taxation of Wealth Transfers When Bequests are Motivated by Joy of Giving," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 12(1), pages 1-22, March.
- Christoph Schinke, 2012. "Inheritance in Germany 1911 to 2009: A Mortality Multiplier Approach," SOEPpapers on Multidisciplinary Panel Data Research 462, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Louis Kaplow, 2011. "An Optimal Tax System," NBER Working Papers 17214, National Bureau of Economic Research, Inc.
- Pierre Pestieau & Emmanuel Thibault, 2012. "Love thy children or money," Economic Theory, Springer, vol. 50(1), pages 31-57, May.
- Marius Brülhart & Raphaël Parchet, 2010. "Alleged Tax Competition: The Mysterious Death of InheritanceTaxes in Switzerland," Cahiers de Recherches Economiques du DÃ©partement d'EconomÃ©trie et d'Economie politique (DEEP) 10.04, Université de Lausanne, Faculté des HEC, DEEP.
- Johann K. Brunner, 2012. "The Bequest Tax as Long-Term Care Insurance," CESifo Working Paper Series 3901, CESifo Group Munich.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.