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Unlocking Hidden Tax Revenues

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Abstract

‣ Demographic ageing raises fiscal pressure while expanding the potential inheritance-tax base ‣ Inheritance taxes currently raise little tax revenues relative to the size of inherited wealth while inheritance flows are projected to rise strongly in the coming decade. ‣ The above features are prominent in the cases of France, Germany, Italy and Spain, which are analysed in this note using the JRC model INTAXMOD. ‣ Our results suggest that the tax revenues obtained from reformed inheritance tax systems could be sizeable, depending on their design. Yet the potential tax revenues obtained would not compensate the projected cost of ageing population.

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  • Barrios Salvador & Cruces Hugo & Grunberger Klaus, 2026. "Unlocking Hidden Tax Revenues," JRC Research Reports JRC147285, Joint Research Centre.
    • Handle: RePEc:ipt:iptwpa:jrc147285
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    1. Facundo Alvaredo & Bertrand Garbinti & Thomas Piketty, 2017. "On the Share of Inheritance in Aggregate Wealth: Europe and the USA, 1900–2010," Economica, London School of Economics and Political Science, vol. 84(334), pages 239-260, April.
    2. Thomas Piketty, 2011. "On the Long-Run Evolution of Inheritance: France 1820--2050," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(3), pages 1071-1131.
    3. Alexander Krenek & Margit Schratzenstaller-Altzinger & Klaus Grünberger & Andreas Thiemann, 2021. "INTAXMOD – Inheritance and Gift Taxation in the Context of Ageing," WIFO Working Papers 645, WIFO.
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