In Germany, transfers of assets between generations are subject to inheritance and gift tax.1 However, there are different views on whether or not the present level of taxation is high enough. Our study looks at the potential for applying increases. We show that the constitutional framework does indeed allow for higher taxation in the case of intergenerational property transfers. We identify the essential points in current German inheritance and gift tax law, which make it possible to transfer large assets with (...) no or low inheritance tax burden. For these points as well as the determination of tax rates, we propose reform approaches and present options for the use of possible additional income. (shrink)

Journal of Social Philosophy, EarlyView.

In this comparative analysis of the UK and Sweden, we consider, if inherited wealth is most deserving of redistributive taxation, then what lessons, if any, may be learned from the difficult paths faced by this tax in these countries. We conclude that the political momentum behind the Swedish family business was distinct, and, possibly, capable of travel to the UK. The research for this article is part of the FairTax EU project, which is funded by the European Union’s Horizon 2020 (...) research and innovation programme 2014-2018, grant agreement No. FairTax 649439. (shrink)

Drawing on detailed German panel data, we find that gifts and inheritances substantially increase households’ private pension savings in accounts which are costly or impossible to withdraw prematurely. Back-of-the-envelope calculations suggest that the average difference in bequest-induced private pension savings between heirs and non-heirs accrues to more than 40,000 euros at retirement, and that it would take an average non-heir household roughly 14 years to match this gap. The sizable difference in private pension savings between heirs and non-heirs persists when (...) we take into account other investments of heirs and non-heirs potentially intended to provide for old age. Our evidence supports the impact of gifts and inheritances on inequality in retirement wealth highlighted in recent research on intergenerational justice. We discuss several policy implications of our results. Online appendix. (shrink)

Poverty in many societies is racialized, with poverty concentrated among particular racial groups. This article aims (a) to provide a philosophical account of how racialized poverty can represent an unjust form of inequality, and (b) to suggest the general direction that policies aiming to reduce racialized poverty ought to take in light of this account. (a) As a species of inequality, racialized poverty (whether absolute or relative) is not intrinsically morally objectionable. However, it can be extrinsically objectionable because it is (...) caused by past or current racial injustice, undermines the value of specific goods to the impoverished, or contributes to objectionable deficiencies in impoverished groups’ political efficacy. (b) Racialized poverty is strongly intergenerational, tending to replicate itself between generations within racial groups. This suggests that approaches to its alleviation that offer income security to all members of those groups, rather than targeted opportunity to subsets of such groups, are both more just and more effective. In particular, societies with racialized poverty should strongly consider policies such as income guarantees, which act to counteract the income volatility that contribute to intergenerational racial poverty. (shrink)