After the crisis due to the Covid-19 pandemicIt will be more difficult for countries to raise more revenue and close inequality gaps, and as governments have increased public spending to tackle the crisis, they will need to restore public finances, Organization for Economic Cooperation and Development (Organization for Economic Cooperation and DevelopmentProposed to implement inheritance tax.
Inheritance tax It is a tax imposed on the group of assets and rights that make up the inheritance of the deceased and which must be borne by his heirs.
In accordance with the provisions of the document “inheritance taxes in the countries of the Organization for Economic Cooperation and Development”, Despite taxes on capital transfers, including inheritance And heritage, in 24 of the 36 OECD countries included in the report, Gift taxes played a limited role in increasing revenue. In 2018, only 0.5% of total tax revenue was obtained from these taxes on average in the countries that have implemented them.
The international body emphasized that there are good reasons to increase the use of inheritance taxes The grants are well-designed, based on considerations of equity, competence and stewardship. He explained that there are strong arguments on property rights in favor of an inheritance tax, particularly a recipient-based inheritance tax with a low-value inheritance exemption.
From an efficiency perspective, the OECD referred to inheritance taxes Tends to have a more limited impact on savings than other taxes levied on wealthy taxpayers; Moreover, while inheritance taxes can negatively affect the succession of family businesses and can reduce the risk of capital misallocation, these behaviors can be addressed to a large extent through a better tax design.
He added that inheritance taxes have a number of administrative advantages compared to other forms of wealth taxes, and that recent developments in international tax transparency are improving countries’ ability to effectively tax capital.
It is important to take into account the country context
However, lThe Organization for Economic Cooperation and Development has warned that it is necessary to take into account the country context, since the appropriate selection of tools Fiscal finances depend on the specific circumstances, including the level of wealth inequality and the level of managerial ability. Additionally, policy options related to inheritance tax must take into account the rest of the tax system, especially other taxes that countries may levy. It applies to personal wealth and capital income.
He pointed out that while inheritance taxes with personal capital income taxes They can be powerful tools to slow the rate of accumulation of wealth across generations, and other tools can be used to achieve this goal.
For exampleA significant reduction in the rate of wealth accumulation can be achieved across generations Through personal capital income taxes, but they may need to be collected at high and progressive rates to have a significant impact.
From an efficiency point of view, a tax combination may be preferable Milder progressive taxes on personal capital income with progressive inheritance tax.
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