Oddbean

Inheritance tax: An economic blunder ========== Sam Pitroda, Chairman of the Indian Overseas Congress, has spoken in favor of introducing an "inheritance tax" in India, citing the US as an example. Inheritance tax refers to the transfer of property or assets to heirs upon the demise of their previous owner. In France, citizens that inherit properties pay between 5 and 60% in inheritance tax. In the US, different states have different rates of inheritance taxes. The re-introduction of a probable inheritance tax in India is concerning, as it will adversely affect the accumulation of wealth amongst the middle-class families. In 1985, the administration under Late Rajiv Gandhi’s government abolished the Estate Duty Act of 1963. The concept of inheritance tax would deter entrepreneurial spirits, investments, and lead to a capital flight and loss of talent. It would also lead to non-declaration of wealth, tax evasion, and the introduction of a parallel economy. In a fast-developing economy like India, incentivizing private investment and entrepreneurship should take precedence over imposing additional taxes on wealth transfer. #InheritanceTax #WealthDistribution #MiddleclassFamilies #EconomicBlunder #Entrepreneurship #WealthAcquisition https://www.newindianexpress.com/opinions/2024/May/12/inheritance-tax-an-economic-blunder-2