Gift and Estate Tax (original) (raw)
Related papers
Willamette L. Rev., 1979
This chapter reviews the economic literature on inheritance and gift taxation. It discusses, among other things, the arguments for subsidizing transfers, the advantages of and problems with accessions taxation, the relationship of transfer taxes to income tax, proposals for unification of tax rates, proposals for base integration, special rules for transfers within family units, problems with interspousal transfers, and the implementation of generation-skippingtransfer taxes.
2001
In this paper we examine the properties of the optimal linearestate tax in the presence of a complete set of tax instrumentsavailable to the social planner. We allow for both types of bequestmotives, namely altruistic and accidental. We examine the casefor estate taxation which seems to be the strongest (but notimpeccable) with accidental bequests. In general, the estate tax ishighly sensitive to the relative importance of the two bequestmotives.
Restructuring Estate and Gift Taxes
National Tax Journal, 2001
Most observers agree that restructuring the current transfer tax system (encompassing the estate, gift and generation skipping transfer taxes) is warranted and appropriate. However, the debate in Congress and the press centers on exactly how the system should be changed. In this paper, I analyze and compare outright repeal of the transfer tax to two alternatives-significant modifications of the current transfer tax system and a tax on appreciation at death-and conclude that a combination of an increased exclusion amount, reduced tax rates, broad tax payment deferral relief for all estates, and modifications to the generation skipping transfer tax would satisfy many of the critics of the current system.
Estate and Gift Tax Incentives and Inter Vivos Giving
National Tax Journal, 2004
The estate tax has received a great deal of attention from policy makers and the public in recent years. Yet we know little about its effect on the transfer of wealth. In this paper we explore the effect of the tax on inter vivos giving. In particular, we look at the degree to which wealthy individuals exploit the potential for tax-free transfers as a means of spending-down their estates, and examine the responsiveness of inter vivos transfers over time to changes in the tax law. To address these questions we employ two data sets, each with important strengths and weaknesses. Using panel data from the Health and Retirement Study (HRS) we find that many of the wealthy fail to take advantage of the gift tax annual exemption to make tax-free transfers in any given year. Even those who do make a transfer in one year, often do not repeat the transfer annually and transfer far less than the tax law would allow. We then use data from linked gift and estate tax returns to examine giving over a much longer period. We find in the aggregate that there are sizable shifts in the timing of giving in response to tax changes, but again, the wealthy appear to transfer very little during their lifetimes. Overall, we conclude that while taxes are an important consideration in transfer behavior of the rich, their behavior is not universally consistent with a tax minimization strategy.
Alternatives to the Gift and Estate Tax
Political Economy - Development: Fiscal & Monetary Policy eJournal, 2016
Following the near death experience of the federal gift and estate tax in 2010, the hundredth anniversary of the tax represents an ideal moment to reflect on the role of this tax and whether an alternative approach might be more desirable and sustainable. This Article examines four prominent alternatives to the current tax: an annual wealth tax, taxing unrealized gains at death, including gifts and inheritances in income, and a lifetime accessions tax that would apply to the cumulative value of gifts and inheritances received by individuals over their lifetimes. In order to assess these alternatives, the Article reconsiders the reasons for taxing wealth transfers, arguing that the primary purpose of a wealth transfer tax is not to raise revenue or enhance progressivity, but to regulate intergenerational transfers of wealth in order to reduce unearned concentrations of wealth and power and promote fair equality of opportunity. On this basis, it argues that a lifetime accessions tax i...
Gifts, Wills and Inheritance Law
Contract Law and Economics
This chapter provides a survey of recent theoretical and empirical work on bequeathing from the viewpoint of both economics, and law and economics. We focus on the interaction between individuals' preferences, legal and fiscal institutions and bequeathing. Two conclusions emerge. First, it appears clearly that the level, the pattern and the timing of bequests depend on both the preferences of the donors and the type of regulation and taxation imposed on inheritance. Second, and conversely, the desirability of such taxation and regulation depends closely on the type of bequests (voluntary or involuntary) that one observes in a given country in a given period.
THE FEDERAL ESTATE AND GIFT TAX: Description, Profile of Taxpayers, and Economic Consequences
OTA Papers is an occasional series of reports on the research, models, and datasets developed to inform and improve Treasury's tax policy analysis. The papers are works in progress and subject to revision. Views and opinions expressed are those of the authors and do not necessarily represent official Treasury positions or policy. OTA Papers are distributed in order to document OTA analytic methods and data and invite discussion and suggestions for revision and improvement. Comments are welcome and should be directed to the authors.
Estate Taxes And Charitable Bequests: Evidence From Two Tax Regimes
SSRN Electronic Journal, 2005
Papers is an occasional series of reports on the research, models, and data sets developed to inform and improve Treasury's tax policy analysis. The papers are works in progress and subject to revision. Views and opinions expressed are those of the authors and do not necessarily represent official Treasury positions or policy. OTA Papers are distributed in order to document OTA analytic methods and data and invite discussion and suggestions for revision and improvement. Comments are welcome and should be directed to the authors.
The Federal Estate Tax: History, Law, and Economics
SSRN Electronic Journal, 2011
This manuscript is a work in progress, and is made available given the timeliness of the subject. It greatly benefitted from the research assistance of Parisa Maneghi and Siobhan O'Keefe. It is a companion to my earlier "The Federal Gift Tax: History, law, and Economics" manuscript which exclusively focused on the gift tax. The views expressed are those of the author and do not necessarily reflect those of the US Department of the Treasury. Comments, corrections, and feedback are greatly appreciated.
2018
Diese Studie befasst sich mit verschiedenen Erbschaftssteuermodellen, die in ausgewählten europäischen Ländern und den Vereinigten Staaten Anwendung finden. Dabei zeigt sich, dass der Großteil der Länder bei der Höhe des angewandten Steuersatzes die Beziehung zwischen Erben und Erblassern und auch das Ausmaß der Erbschaft berücksichtigt. Speziell der intergenerationale Transfer innerhalb der Familie wird durch niedrigere Steuersätze und höhere Freibeträge steuerlich begünstigt; darüber hinaus insbesondere Betriebsvermögen und Eigenheime. Des Weiteren werden in der Analyse unter anderem Verteilungseffekte und Steueraufkommenspotentiale der verschiedenen Erbschaftssteuermodelle beleuchtet. Obwohl die Länder derzeit relativ geringe öffentliche Einnahmen durch die Erbschaftssteuer erzielen, lassen das Wachstum des privaten Vermögens und dessen Konzentration auf ein höheres Einnahmepotential in Zukunft schließen. Overview: This article provides an overview of different inheritance tax regimes in selected European countries and the United States. We identify that in the majority of countries the tax rate is related to the relationship between bequeather and inheritor as well as the value of the inherited assets. In most countries the transfer of wealth within families is treated preferentially (lower tax rates, tax exemptions and reliefs). This is particularly the case for business assets and family homes. This analysis further discusses the features and effects of inheritance tax regimes based on various criteria. These cover behavioural responses of individuals and different distributional effects of an inheritance tax. Furthermore, the amount of tax revenues varies considerably between countries and over time. Although the actual revenues of inheritance taxation are quite low in the selected countries (ranging between 0.1% and 0.5% of GDP), some indicators point to higher revenue potentials in the future. Due to an increase in private wealth and its concentration over time, we can expect to observe an increase in inheritance tax revenues, even though countries allow high inheritance tax-free 2 amounts. An appropriate design of inheritance taxation could further help to foster economic growth and decelerate the increase in wealth inequality.