TAX NOTES, February 2, 2009
The upcoming one-year repeal of the federal estate tax creates an opportunity to reconsider the taxation of wealth transfers. This paper argues that federal wealth transfer taxes should be retained and potentially expanded. The estate tax contributes importantly to the progressivity of the tax system as a whole by partially offsetting the tax advantages accorded to inherited income among high-income households. It also appears to be a relatively efficient source of revenue. Nevertheless, the estate tax system could be improved by adopting a package of simplification measures or, more fundamentally, by replacing it with an inheritance tax.
Date of Authorship for this Version
Batchelder, Lily L., "Estate Tax Reform: Issues and Options" (2009). New York University Law and Economics Working Papers. Paper 173.
Economics Commons, Estates and Trusts Commons, Law and Economics Commons, Legislation Commons, Social Welfare Law Commons, Taxation Commons, Taxation-Federal Commons, Taxation-Federal Estate and Gift Commons