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this post was submitted on 30 Nov 2025
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That is exactly what I said. Couldn't put it in better words. Exemptions. Only difference I said is exempt the amount upto, let's say, what a family of 3 people needs for let's say 3 years. That way the inheriter won't have to pay a superficial tax while still maintaining a livable lifestyle. Charging inheritance tax on poor people (however little) puts a lot of burden on them for something they are not willingly earning or purchasing. Charging millionaires and billionaires with inheritance tax is better as there will be a continuous cycle of wealth redistribution and thus they won't be able abuse their powers. But wealth tax is more efficient that way as it would prevent someone becoming obscenely wealthy in the first place.
Taxing the poor has never worked, they will hoard more unaccounted whatever wealth they have to avoid those taxes rather than owning real estate, shared, bonds, etc and participating in the economy. No one likes paying taxes — especially on something which they are not willingly earning or purchasing.
Also you pay VAT and GST only once — so it is not an example of double taxation. These have been designed in such a way that the only the final customer pays tax on it as the final entity in the supply chain. Whatever VAT/GST the retailer, supplier and the service provider paid is refunded by the government in the form of ITC (Input Tax Credit).
And that is the point of inheritance tax. There might be other means to achieve that same goal, but I suspect inheritance tax is politically more realistic. In our western societies theres a deeply ingrained narrative of 'rags to riches' and how the rich earned their money because they contribute so much to society and worked hard for it, coupled with the wishful thinking of 'it might be me some day'. I don't have to preach, how flawed those ideas are, but it is much easier within that ideology to argue for an inheritance tax, where it is obvious that the heir didn't have to do anything to really deserve it.
Wealth tax needs a bit more of a marxist understanding of economic mechanisms.