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Why are Inheritance Taxes Unpopular?
Author(s) -
DOWDING KEITH
Publication year - 2008
Publication title -
the political quarterly
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.373
H-Index - 37
eISSN - 1467-923X
pISSN - 0032-3179
DOI - 10.1111/j.1467-923x.2008.00914.x
Subject(s) - inheritance tax , inheritance (genetic algorithm) , economics , popularity , welfare , tax deferral , public economics , framing (construction) , law and economics , tax reform , political science , law , state income tax , market economy , genetics , gross income , structural engineering , biology , gene , engineering
There is a puzzle over why inheritance taxes are unpopular relative to other taxes since they are progressive and, assuming they are spent wisely on welfare goods, more people should gain than lose through inheritance tax. I examine four reasons why inheritance tax might be unpopular (a) propaganda, (b) fiscal illusion, (c) framing and developing the latter (d) an evolutionary basis in human reasoning. The latter suggests that the relative popularity of a tax is related to how far the money taxed is already ‘in the possession’ of the person taxed. Given these reasons I make a suggestion and examine some proposal for making inheritance tax less unpopular.