TITLE:
An Analysis of the Expected Effect of Levying Inheritance Tax on Capital Outflows
AUTHORS:
Chengfei Qiu
KEYWORDS:
Inheritance Tax, Substitution Effect, Economic Inequality, Capital Outflows
JOURNAL NAME:
Technology and Investment,
Vol.9 No.1,
February
7,
2018
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.