Death Taxes: A Potential Backfire
There are two key reasons why implementing death taxes may not yield the desired results.
Australia is currently facing a budget problem, with expenditures exceeding earnings, prompting a search for ways to increase tax revenue.
Treasurer Jim Chalmers has already attempted to raise taxes on superannuation, but was forced to abandon plans to retrospectively tax existing balances.
- Death taxes may hurt productivity and investment among the living.
- They may not raise as much revenue as expected, instead encouraging people to reorganize their affairs while still alive.
Taxing the dead will hurt productivity and investment among the living and won’t raise as much as expected, instead encouraging people to change their affairs while alive.
Author's summary: Death taxes may backfire due to reduced productivity and investment.