The Evolution of Inheritance Tax
Back in 1789, American statesman Benjamin Franklin famously remarked to scientist Jean-Baptiste Le Roy that “nothing is certain except death and taxes.” While both are unavoidable to varying extents, the imposition of a “tax on death” through inheritance tax is less of a foregone conclusion.
Public Perception of Inheritance Tax
Despite being considered as a means to redistribute wealth and fund public services, inheritance tax has faced scrutiny and criticism in modern times. Many individuals view it as an unjust levy, with polls from various countries reflecting mixed sentiments towards the tax.
Challenges to Inheritance Tax Abolition
Advocates for abolishing inheritance tax often argue for the protection of intergenerational wealth transfer and the avoidance of double taxation. However, critics contend that such a move would perpetuate social inequalities and privilege based on family wealth rather than merit.
Impact of Inheritance on Wealth Disparity
Studies have shown a strong correlation between parental wealth and the financial well-being of descendants, challenging the notion of a meritocratic society. As inheritances become larger, particularly due to rising asset values, the gap between affluent individuals and those with fewer resources widens, hindering social mobility.
Overall, the debate surrounding inheritance tax continues to raise questions about fairness, equality, and the role of government in wealth distribution.
