An Analysis of the Expected Effect of Levying Inheritance Tax on Capital Outflows - Technology and Investment

TI > Vol.9 No.1, February 2018

An Analysis of the Expected Effect of Levying Inheritance Tax on Capital Outflows ()

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Download as PDF (Size: 231KB) PP. 24-35

DOI: 10.4236/ti.2018.91002 863 Downloads 1,815 Views

Author(s)

Chengfei Qiu

Affiliation(s)

College of Economics, Jinan University, Guangzhou, China.

ABSTRACT

With the constant development of reform and opening up, China’s economy and society obtain considerable development; the living standards of the people continuously improve, and the economic inequality in China widens day by day. Therefore, the voice for demand of levying inheritance tax to regulate the economic inequality becomes louder and louder, but the substitution effect of taxation makes us consider the negative impact of inheritance tax on economic efficiency. This text selects the effect of levying inheritance tax for the capital outflows as the breakthrough point, and makes empirical analysis on its expected effect for capital outflows. The conclusion indicates that the levy of inheritance tax will accelerate our country’s capital outflows. Facing the economic and social situation in our country, this text considers that China is not suitable for levying the inheritance tax at current stage and we need to take other measures to adjust the economic inequality.

KEYWORDS

Inheritance Tax, Substitution Effect, Economic Inequality, Capital Outflows

Share and Cite:

Qiu, C. (2018) An Analysis of the Expected Effect of Levying Inheritance Tax on Capital Outflows. Technology and Investment, 9, 24-35. doi: 10.4236/ti.2018.91002.

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