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Brief

Do Estate and Inheritance Taxes Affect Entrepreneurship?

Leonard E. Burman, Robert McClelland, Chenxi Lu
March 5, 2018
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Abstract

Despite its relatively small role in the federal taxation system—accounting for less than 1 percent of revenues—the estate and gift tax is controversial. This brief surveys research on the effect of estate and inheritance taxes on entrepreneurship and presents new evidence. We find that receiving an inheritance increases the likelihood of owning and managing a business. The prospect of leaving an estate subject to taxation may reduce the likelihood of continued self-employment by encouraging retirement.

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Individual Taxes
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Meet the Experts

  • Leonard E. Burman
    Institute Fellow
  • Robert McClelland
    Senior Fellow
  • Chenxi Lu
    Research Associate
Research report

New Evidence on The Effect of The TCJA On the Housing Market

Robert McClelland, Livia Mucciolo, Safia Sayed
March 30, 2022
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