Costs and Consequences of the Federal Estate Tax
41 Pages Posted: 7 Jun 2006
Date Written: May 2006
This study examines the arguments for and against the federal estate tax, finding that benefits of the tax are often overstated, and in any case are far smaller than the documented costs. On balance, the analysis finds that the costs imposed by the estate tax outweigh any potential benefits that the tax might produce. In light of this finding, there is no compelling reason to keep the tax, and a number of reasons to reduce or abolish it.
Keywords: estate tax, death tax, taxation, inheritance, bequests, income distribution, intergenerational transfers, capital
JEL Classification: E60, H20, H24, D31
Suggested Citation: Suggested Citation