Taxation of bequests and equality of chances: the link re-established
نویسندگان
چکیده
We study an optimum-taxation model, where individuals differ not only in earning abilities, but also in inherited endowments. We show first that an expenditure tax (which is equivalent to a tax on endowments), combined with an optimum nonlinear income tax, is desirable according to a utilitarian social objective, if on average high-able individuals have larger endowments that low-able. Secondly, we show that the same condition applies in a dynamic version of the model, that is, even if welfare of subsequent generation is taken into account. *) Department of Economics University of Linz Altenberger Straße 69 4040 Linz, Austria Tel. +43/732 2468-8248 Fax: +43/732 2468 9821 [email protected] or [email protected]
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