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Abstract for:

Inheritance Taxation: Redistribution and Predistribution

Frank A  Cowell,  Chang  He,  Dirk  Van de gaer,  December 2017
Paper No' PEP 35: | Full paper (pdf)
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Keywords: wealth distribution, inheritance, inheritance taxation

JEL Classification: D31; D63

Is hard copy/paper copy available? YES - Paper Copy Still In Print.
This Paper is published under the following series: Public Economics Programme Discussion Papers
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It is well known that taxes on the transfer of wealth typically raise very little revenue. However, this does not mean that they are ineffective as tools for redistribution. In this paper we show how important such taxes can be in the long-run distribution of wealth, reducing equilibrium inequality (the "predistribution" effect) by a much larger amount than what is apparent in terms of the immediate impact of the tax (the "redistribution" effect).