Inheritance Tax: Bridging Economic Divides

Inheritance tax is viewed as a means to narrow economic disparities by redistributing wealth to support social welfare schemes. By taxing inheritances, the government could bridge the gap between the rich and poor, as the wealthiest households tend to inherit significantly more than poorer households. This redistribution could encourage heirs to actively participate in the workforce, rather than relying solely on inherited wealth. Additionally, studies suggest that inheritance taxes can lead to higher labor supply, resulting in increased government revenue.