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

Author

Listed:
  • Ivo Bischoff

    (University of Kassel)

  • Nataliya Kusa

    (University of Kassel)

Abstract

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 partic-ular 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.

Suggested Citation

  • Ivo Bischoff & Nataliya Kusa, 2016. "Should wealth transfers be taxed? Citizens’ view on a fundamental question," MAGKS Papers on Economics 201636, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    • Handle: RePEc:mar:magkse:201636
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    File URL: http://www.uni-marburg.de/fb02/makro/forschung/magkspapers/paper_2016/36-2016_bischoff.pdf
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    References listed on IDEAS

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    Cited by:

    1. Ivo Bischoff & Nataliya Kusa, 2017. "Citizens‘ preferences for a tax exemption for caregivers in inheritance taxation – an empirical analysis using German survey data," MAGKS Papers on Economics 201704, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    2. Ivo Bischoff & Nataliya Kusa, 2016. "Should there be a more active role of family care assistants in long-term care provision? – survey evidence on the view of German citizens," MAGKS Papers on Economics 201642, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).

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    More about this item

    Keywords

    inheritance taxation; intergenerational transfers; citizens’ preferences; long-term care; vignettes;
    All these keywords.

    JEL classification:

    • H27 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other Sources of Revenue
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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