Information Provision and Support for Inheritance Taxation: Evidence from a Representative Survey Experiment in Germany

Luna Bellani, Kattalina Berriochoa, Mark Kapteina and Guido Schwerdt ()
Additional contact information
Kattalina Berriochoa: University of Konstanz
Mark Kapteina: University of Konstanz
Guido Schwerdt: University of Konstanz

No 17099, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We study the effects of information on attitudes towards inheritance taxation using survey experiments fielded in Germany. We show that information about tax allowances increases demand for higher taxes and shifts public opinion from favoring abolition to supporting the tax. Effects are primarily due to a prevalent underestimation of tax allowances and the alteration of people's expectations of being affected by such taxes. In contrast, information highlighting the increasing proportion of inherited wealth only negligibly affects policy demand. Our results suggest that pocketbook motives and misinformation may contribute to explaining the paradox of limited demand for inheritance taxation despite growing inequality concerns.

Keywords: capital taxation; equality of opportunity; inheritance tax; information; randomized experiment (search for similar items in EconPapers)
JEL-codes: D72 D83 H20 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2024-06
New Economics Papers: this item is included in nep-eec, nep-exp, nep-pbe and nep-pub
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Related works:
Working Paper: Information Provision and Support for Inheritance Taxation: Evidence from a Representative Survey Experiment in Germany (2024)
Working Paper: Information provision and support for inheritance taxation: Evidence from a representative survey experiment in Germany (2024)
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