The Taxation of Capitalistic Bequests [electronic resource] /
Kley, Verena.author.
The taxation of bequests has long been and still is subject to intensive discussions in many industrialized countries. Triggered by these discussions, Verena Kley analyzes the taxation of bequests from economic perspectives, focusing on wealth transfers of very rich individuals. Given empirical findings, bequests of these individuals generate almost the entire revenues from wealth transfer taxation. Due to this, their specific preferences prove to be decisive for the optimal taxation of bequests. The author analyzes normative as well as positive implications for optimal wealth transfer taxation, accounting for a ‚capitalist spirit’ – traditionally associated with the upper tail of the wealth distribution.
Acknowledgement; Contents; List of Tables; List of Figures; List of Symbols; 1 Introduction; 1.1 Problem definition; 1.2 A note on optimal tax theory; 1.3 Aim and structure of this study; 2 Optimal wealth transfer taxation: a review of existing literature; 2.1 Motives for intergenerational wealth transfers; 2.1.1 Unplanned bequests; 2.1.2 Planned bequests; 2.1.2.1 Altruism; 2.1.2.2 Paternalism; 2.1.2.3 Strategic exchange; 2.1.2.4 Retrospective; 2.1.3 Capitalistic bequests; 2.2 Normative analysis of intergenerational wealth transfer taxation; 2.2.1 Redistributive vs. allocative effects
2.2.1.1 Bequest tax effects on savings2.2.1.2 Tax avoidance and migration; 2.2.2 Modeling optimal taxation of bequests; 2.2.2.1 Reference model without bequests; 2.2.2.2 Unplanned bequests; 2.2.2.3 Altruism; 2.2.2.4 Paternalism; 2.2.2.5 Reciprocal bequests; 2.2.3 Implications for optimal bequest tax design; 2.3 Political-economic analysis of intergenerational wealth transfer taxation; 2.3.1 Politically optimal taxation of bequests; 2.3.2 Extensions; 2.4 Concluding remarks; 3 Normative aspects of taxing capitalistic bequests
3.1 Life-cycle savings and family bequests - an explanation for transfers of the rich?3.2 The Model; 3.2.1 Individual optimum bequest decision; 3.2.1.1 Special case - optimal bequest decision; 3.2.1.2 Special case - optimal bequest decision under estate taxation; 3.2.2 Social welfare; 3.3 The existence of self-governed foundations; 3.4 Concluding remarks; 4 Political-economic aspects of taxing capitalistic bequests; 4.1 Stylized facts; 4.2 The Model; 4.2.1 Economic equilibrium; 4.2.2 Political equilibrium; 4.2.2.1 Case 1: Voting on labor income and bequest tax rates
4.2.2.2 Case 2: Voting on redistributive bequest taxes4.3 Extensions; 4.3.1 The economic power of the very rich; 4.3.2 Aging societies; 4.3.3 Policy commitment; 4.4 Concluding remarks; 5 Wealth transfer taxation in practice: a descriptive analysis; 5.1 Wealth transfer taxation in the OECD countries; 5.2 Inheritance taxation in Germany; 5.3 Assessment of current bequest tax policy; 6 Conclusion; 6.1 Results of this study; 6.2 Policy recommendations; Bibliography
"Doctoral thesis accepted by the Department of Economics and Business Engineering at Karlsruhe Institute of Technology (KIT) - University of the State Baden-Wuerttemberg and National Center of the Helmholtz Association."
Includes bibliographical references.
The taxation of bequests has long been and still is subject to intensive discussions in many industrialized countries. Triggered by these discussions, Verena Kley analyzes the taxation of bequests from economic perspectives, focusing on wealth transfers of very rich individuals. Given empirical findings, bequests of these individuals generate almost the entire revenues from wealth transfer taxation. Due to this, their specific preferences prove to be decisive for the optimal taxation of bequests. The author analyzes normative as well as positive implications for optimal wealth transfer taxation, accounting for a ‚capitalist spirit’ – traditionally associated with the upper tail of the wealth distribution.
Tax accounting.
Tax laws.
Finance.
Business Taxation/Tax Law.
Finance, general.