Does the Estate Tax Raise Revenue

摘要: Proponents of transfer taxation argue that levies on gifts and estates serve the dual purposes breaking up large concentrations private wealth, while raising significant revenues. A number commentators have recently questioned first these purported advantages, grounds a variety available estate planning techniques allow wealthy individuals to pass vast resources essentially tax free. Most entail use intra vivos transfers, are particularly effective when transfers made as early in life possible. In this paper, I same also largely neutralize second objective by depressing income This effect is reinforced tendency for encourage charitable bequests. Although it difficult quantify indirect revenue effects with high degree precision, find that, prior Tax Reform Act 1986, could easily offset all revenues collected through tax. The recent only partially vitiates conclusions.