Inheritance tax – Why tax on unearned income needs to be increased.
As Professor Karen Rowlingson, University of Birmingham states:
- More money needed for public purse
- Very few people pay inheritance tax
- No living person pays inheritance tax (really an estate tax)
- It is difficult to evade
- It is fairer to tax unearned income more than earned income
- Wealth inequality is extremely high (bottom 40% of people own only 4% of wealth)
- Higher inheritance tax can increase the equality of opportunity (every child needs a fair chance)
- ‘Great expectations’ are dangerous – no incentive to work if expecting a large inheritance
- Higher inheritance tax would encourage people to spend and give
- To live in a just society (can double inheritance tax and still ensure the majority can leave something to their families)
