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Cremer, Helmuth
, Gahvari, Firouz and Pestieau, Pierre
(2009)
Accidental bequests: a curse for the rich and a boon for the poor.
TSE Working Paper, n. 09-119, Toulouse
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Abstract
When accidental bequests signal otherwise unobservable individual characteristics such as productivity and longevity, the tax administration should partition the population into two groups: One consisting of people who do not receive an inheritance and the other of those who do. The first tagged group gets a second-best tax à la Mirrlees; the second group a first-best tax schedule. The solution implies that receiving an inheritance makes high-ability types worse off and low-ability types better off. High-ability individuals will necessarily face a bequest tax of more than 100%, while low-ability types face a bequest tax that can be smaller as well as larger than 100%. With a Rawlsian social welfare function, the low-ability types too face a more than 100% tax on bequests.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | November 2009 |
| Place of Publication: | Toulouse |
| Uncontrolled Keywords: | Accidental bequests, estate tax, tagging, first best, second best |
| JEL Classification: | H21 - Efficiency; Optimal Taxation |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse 1 Capitole |
| Site: | UT1 |
| Date Deposited: | 18 Jan 2012 06:01 |
| Last Modified: | 02 Apr 2021 15:36 |
| OAI Identifier: | oai:tse-fr.eu:21970 |
| URI: | https://publications.ut-capitole.fr/id/eprint/3282 |
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