The Estate Tax and Inter Vivos Transfers over Time
American Economic Review · 2013 · Volume 103 · Issue 3
Abstract
The strong dislike evidenced by the American public towards the estate tax suggests that the wealthy wish to transfer resources to their heirs tax-free and would thus exploit mechanisms allowing them to reduce the tax burden whenever possible. However, I find strong evidence that the wealthy fail to utilize what is perhaps the simplest method of tax avoidance--that of making transfers to eventual heirs up to the annual exclusion. Instead they transfer far less than the amount permitted by the tax code, whether measured in cross-section or over time. In failing to give more, they forgo significant tax savings.
Keywords
Personal Income and Other Nonbusiness Taxes and Subsidies, includes inheritance and gift taxes, State and Local Taxation, Subsidies, and Revenue, Tax Law
Enable JavaScript for citation tools and additional paper interactions.