Charities and the political support for estate taxation

Georges Casamatta (1) , Helmuth Cremer (2) , Pierre Pestieau (3)

1 LISA - Lieux, Identités, eSpaces, Activités
2 TSE-R - Toulouse School of Economics
3 PSE - Paris-Jourdan Sciences Economiques

We explain why wealthy people often favor estate taxation, while wealthless people oppose it. Wealthy people devote part of their estate to charities. Estate taxation with tax breaks for charities increases contributions to an otherwise underprovided public good. (C) 2011 Elsevier B.V. All rights reserved.

Keywords: Estate taxation; Charities; Nash equilibrium

Domains: Economics and Finance

Georges Casamatta, Helmuth Cremer, Pierre Pestieau. Charities and the political support for estate taxation. Economics Letters, 2012, 115 (3), pp.423-426. ⟨10.1016/j.econlet.2011.12.101⟩. ⟨hal-02520601⟩