Should wealth transfers be taxed? Citizens’ view on a fundamental question

In a recent representative survey, German citizens are asked whether or not inherited wealth beyond a certain amount should be taxed. Almost 60 percent stated that it should not be taxed. We use this survey to identify the factors that drive this fundamental opposition against the taxation of inheri...

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Bibliographic Details
Published in:MAGKS - Joint Discussion Paper Series in Economics (Band 36-2016)
Main Authors: Bischoff, Ivo, Kusa, Nataliya
Format: Article
Language:English
Published: Philipps-Universität Marburg 2016
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Online Access:PDF Full Text
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Summary:In a recent representative survey, German citizens are asked whether or not inherited wealth beyond a certain amount should be taxed. Almost 60 percent stated that it should not be taxed. We use this survey to identify the factors that drive this fundamental opposition against the taxation of inherited wealth. We find monetary self-interest and redistributive preferences to drive citizens’ attitude in this matter. We account for other intra-familial transfers, in particular long-term care. Being at the heart of intra-familial exchange relations, women are more likely to oppose wealth transfer taxation than men are. Citizens’ attitude towards inheritance taxation does not depend on their personal experience in giving long-term care. Expecting the typical German family to reward intra-familial caregiving through a higher inheritance reduces the opposition against the taxation of inherited wealth.
Physical Description:40 Pages
ISSN:1867-3678
DOI:10.17192/es2024.0525