Better income tax than inheritance tax

Nobody likes to pay taxes. Or at least not seducing him, but if we accept and choose them, some are better than others. This is what ends a research on La Caixa Foundation based on a representative sample of the Spanish population in whichIncreased support for higher rates for personal income tax For example, rather than tax legacies, inheritance tax. Income tax is the most levied direct tax in 2021, with a total of 94,500 million and nearly 20 million taxpayers. Inherited, transferred to the autonomous, some are paid yes, some are paid no. For example, a 30-year-old single man or woman who inherited 800,000 euros from his father, 200,000 of which corresponds to his habitual residence, will pay more than 103,000 euros in Asturias and nothing in Galicia, Cantabria and Andalusia.

work led by Luis Miller of the Supreme Council for Scientific Research (CSIC), José A. Noguera of the Autonomous University of Barcelona (UAB); and Leire Salazar of the National University of Distance Education (Uned) Choose significantly higher and increased average rates for personal income tax More than the inheritance tax in any case”. To achieve this, a questionnaire was distributed to a sample of 1,500 people representing the Spanish population in March 2020.

For successors, “the chosen rate does not reach 10% in most hypothetical scenarios, while it exceeds 30% for hypothetical subjects with very high income for personal income tax.” In both cases, the title is ‘Inheritance tax and income tax: how much should be paid?’ According to the study, “the majority prefer higher rates than those in force in different autonomous communities”.

The same analysis raises other notable questions. When subjects are forced to consider their own position in the income distribution in the experiment, they prefer “higher rates for both taxes”. The difference can be up to four points.

Another important issue is that “90% of the experimental subjects are incorrectly positioned in the income distribution”. And the truth is, “many of them place themselves in middle positions, rich they see themselves as less rich than they are and the poor as less poor.” And “those who see themselves as poorer than they are favor lower inheritance tax rates.”

Numerous survey-based studies reveal that “the vast majority of citizens acknowledge the need to pay taxes and approve of their existence as a means of redistribution and financing for utilities.” However, this understanding is not the same for all citizens or all financial figures.

The best example is the different social support for personal income tax and inheritance and donation tax. In fact, the person taxing the inheritance “faces greater social and political resistance in many countries”. All this led to “a marked reduction in the taxation of inheritances and even their virtual disappearance in some autonomous communities,” they recall.

So why this dislike? Few studies justify the importance of certain family values, such as “legitimators of inheritance with almost no tax burden, a perceived role of such taxes in promoting equal opportunity, or a lack of knowledge of how these taxes affect society.” in the function of the household itself, their position in the distribution of income and wealth”.

The authors conclude that one of the results of this experiment is that “knowing the situation in the income distribution of citizens as well as intensifying the tax culture may lead to a greater willingness to pay progressive taxes.”

Source: Informacion


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