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Did the Death of Australian Inheritance Taxes Affect Deaths?

2006; De Gruyter; Volume: 6; Issue: 1 Linguagem: Inglês

10.2202/1538-0653.1654

1538-0653

Joshua S. Gans, Andrew Leigh,

Gender, Labor, and Family Dynamics

Abstract In 1979, Australia abolished federal inheritance taxes. Using daily deaths data, we show that approximately 50 deaths were shifted from the week before the abolition to the week after. This amounts to over half of those who would have been eligible to pay the tax. Although we cannot rule out the possibility that our results are driven by misreporting, our results imply that over the very short run, the death rate may be highly elastic with respect to the inheritance tax rate.