Discussions about economic equality have, in recent years, extended beyond considerations of income distribution to encompass the distribution of wealth and its intergenerational transfer. Driven by new and more frequent data, a better understanding is emerging of the concentration of wealth within society and the dynamics of its transfer between generations.
This article contributes to that discussion by assessing the economic and social rationales for the taxation of intergenerational wealth transfers. It outlines the social policy case for inheritances taxes grounded in vertical equity principles. Then it presents comparative data on household wealth across high-income European countries before focusing on one of these, Ireland, to consider whether current inheritance taxation policies counter or perpetuate these inequalities. Focusing on that system, the article explores a range of inheritance taxation reforms intended to address wealth inequality while providing recurring funds for public services and redistribution.
