Optimal taxation of wealth transfers when bequests are motivated by joy of giving Johann
نویسندگان
چکیده
Inherited wealth creates a second distinguishing characteristic of individuals, in addition to earning abilities. We incorporate this fact into a model of optimal labor income taxation, with bequests motivated by joy of giving. We nd that taxes on bequests or on inheritances allow further redistribution, if in the parent generation initial wealth and earning abilities are positively related. On the other hand, these taxes distort the bequest decision; thus, the overall e¤ect on social welfare is ambiguous. A tax on all expenditures of a generation (a uniform tax on consumption plus bequests) has the same redistributive e¤ect as an inheritance tax but does not distort the bequest decision. JEL-classi cation: H21, H24.
منابع مشابه
Optimum taxation of inheritances
Inheritances create a second distinguishing characteristic of individuals, in addition to earning abilities. We incorporate this fact into an optimum income taxation model with bequests motivated by joy of giving, and show that a tax on inherited wealth is equivalent to a tax on expenditures, i. e. to a uniform tax on consumption plus bequests. These taxes have a positive effect on intertempora...
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