Inheritance tax – Tax on unearned income

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┬ápays 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)

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