An Economic Justification for Rignano's Inheritance Tax Proposal

IF 0.5 Q4 ECONOMICS

ATLANTIC ECONOMIC JOURNAL Pub Date : 2024-11-29 DOI:10.1007/s11293-024-09808-w

Yotam Peterfreund, Michel Strawczynski

{"title":"An Economic Justification for Rignano's Inheritance Tax Proposal","authors":"Yotam Peterfreund, Michel Strawczynski","doi":"10.1007/s11293-024-09808-w","DOIUrl":null,"url":null,"abstract":"<div><p>Families are widely recognized as crucial agents in the transmission of wealth, contributing to the perpetuation of inequality and limiting mobility across income levels. To address the economic dynamics behind this phenomenon, classical economists have explored potential solutions through government tax-transfer systems. One such proposal, advanced by Eugenio Rignano, suggests imposing higher taxes on inheritances passed down through multiple generations within a family. To analyze this idea, a model is developed that incorporates both altruistic and accidental bequests, with altruistic bequests playing a crucial role in wealth transmission. The model considers the potential disincentives that inheritance taxation might create for savings intended for altruistic bequests, as well as the benefits of taxing accidental bequests. The novelty of the model lies in its characterization of optimal inheritance taxes when there is an interaction between parents' educational decisions for their children and the transmission of wealth. Simulations suggest that adopting Rignano's proposed tax scheme enhances social welfare compared to the commonly used proportional inheritance tax. These findings suggest that Rignano's tax scheme warrants further research and policy discussion.</p></div>","PeriodicalId":46061,"journal":{"name":"ATLANTIC ECONOMIC JOURNAL","volume":"52 4","pages":"201 - 212"},"PeriodicalIF":0.5000,"publicationDate":"2024-11-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://link.springer.com/content/pdf/10.1007/s11293-024-09808-w.pdf","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"ATLANTIC ECONOMIC JOURNAL","FirstCategoryId":"1085","ListUrlMain":"https://link.springer.com/article/10.1007/s11293-024-09808-w","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"ECONOMICS","Score":null,"Total":0}

引用次数: 0

Abstract

Families are widely recognized as crucial agents in the transmission of wealth, contributing to the perpetuation of inequality and limiting mobility across income levels. To address the economic dynamics behind this phenomenon, classical economists have explored potential solutions through government tax-transfer systems. One such proposal, advanced by Eugenio Rignano, suggests imposing higher taxes on inheritances passed down through multiple generations within a family. To analyze this idea, a model is developed that incorporates both altruistic and accidental bequests, with altruistic bequests playing a crucial role in wealth transmission. The model considers the potential disincentives that inheritance taxation might create for savings intended for altruistic bequests, as well as the benefits of taxing accidental bequests. The novelty of the model lies in its characterization of optimal inheritance taxes when there is an interaction between parents' educational decisions for their children and the transmission of wealth. Simulations suggest that adopting Rignano's proposed tax scheme enhances social welfare compared to the commonly used proportional inheritance tax. These findings suggest that Rignano's tax scheme warrants further research and policy discussion.

查看原文本刊更多论文

里亚诺遗产税提案的经济理由

人们普遍认为，家庭是财富传递的关键因素，助长了不平等的延续，限制了不同收入水平之间的流动性。为了解决这一现象背后的经济动态，古典经济学家通过政府税收转移系统探索了潜在的解决方案。Eugenio Rignano提出的其中一项建议是，对家族内多代传承的遗产征收更高的税。为了分析这一观点，我们建立了一个模型，其中包括利他性遗赠和意外遗赠，其中利他性遗赠在财富传递中起着至关重要的作用。该模型考虑了遗产税可能对用于利他主义遗赠的储蓄产生的潜在抑制作用，以及对意外遗赠征税的好处。该模型的新颖之处在于，当父母对子女的教育决定与财富传递之间存在相互作用时，它对最优遗产税进行了表征。模拟表明，与常用的比例遗产税相比，采用里亚诺提出的税收方案可以提高社会福利。这些发现表明，里亚诺的税收方案值得进一步研究和政策讨论。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

ATLANTIC ECONOMIC JOURNAL ECONOMICS-

CiteScore

1.30

自引率

16.70%

发文量

期刊介绍： The Atlantic Economic Journal (AEJ) has an international reputation for excellent articles in all interest areas, without regard to fields or methodological preferences. Founded in 1973 by the International Atlantic Economic Society, a need was identified for increased communication among scholars from different countries. For over 30 years, the AEJ has continuously sought articles that traced some of the most critical economic changes and developments to occur on the global level. The journal''s goal is to facilitate and synthesize economic research across nations to encourage cross-fertilization of ideas and scholarly research. Contributors include some of the world''s most respected economists and financial specialists, including Nobel laureates and leading government officials. AEJ welcomes both theoretical and empirical articles, as well as public policy papers. All manuscripts are submitted to a double-blind peer review process. In addition to formal publication of full-length articles, the AEJ provides an opportunity for less formal communication through its Anthology section. A small point may not be worthy of a full-length, formal paper but is important enough to warrant dissemination to other researchers. Research in progress may be of interest to other scholars in the field. A research approach ending in negative results needs to be shared to save others similar pitfalls. The Anthology section has been established to facilitate these forms of communication. Anthologies provide a means by which short manuscripts of less than 500 words can quickly appear in the AEJ. All submissions are formally reviewed by the Board of Editors. Officially cited as: Atl Econ J