Age and Health Related Inheritance Taxation

Marie-Louise Leroux and Pierre Pestieau

No 9004, CESifo Working Paper Series from CESifo

Abstract: This paper studies the design of an optimal non linear inheritance taxation when individuals differ in wage as well as in their risks of both mortality and old-age dependance. We assume that the government cannot distinguish between bequests motives, that is whether bequests result from precautionary reasons or from pure joy of giving reasons. Instead, we assume that it only observes whether bequests are made early in life or late in life, and in the latter case, whether the donor is autonomous or not. The main result is that, under asymmetric information, in addition to labour income taxation, early bequests of the low-productivity agent should be distorted downward, that is, they should be taxed so as to relax incentive constraints.

Keywords: bequest taxation; long term care; utilitarianism; old-age dependency; non linear taxation (search for similar items in EconPapers)
JEL-codes: H21 H23 I14 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-age, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.cesifo.org/DocDL/cesifo1_wp9004.pdf (application/pdf)

Related works:
Working Paper: Age and health related inheritance taxation (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_9004

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().