SunsetSail
Recycles dryer sheets
- Joined
- Jul 28, 2010
- Messages
- 255
Coming at this from a different angle, the following is a quote from a study performed by the Tax Policy Institute in the late 90s:
"Estate taxes also affect the heirs' work effort and savings. Recent evidence suggests that large inheritances may speed up the retirement decision. Even for those who remain in the labor force, one may also observe a reduction in labor supply. However, labor supply effects are generally small. Similarly, consumption is also observed to rise in the aftermath of inheritance. But, again, these effects are small." (emphasis added)
Logic dictates that if you are for an estate tax you are against early retirement....so put that in your tax pipe and smoke it.
Obviously I kid, but the information about consumption and retirement is interesting albeit noted to only have a small affect.
"Estate taxes also affect the heirs' work effort and savings. Recent evidence suggests that large inheritances may speed up the retirement decision. Even for those who remain in the labor force, one may also observe a reduction in labor supply. However, labor supply effects are generally small. Similarly, consumption is also observed to rise in the aftermath of inheritance. But, again, these effects are small." (emphasis added)
Logic dictates that if you are for an estate tax you are against early retirement....so put that in your tax pipe and smoke it.
Obviously I kid, but the information about consumption and retirement is interesting albeit noted to only have a small affect.