“The idea that we should be able to pass on our life’s accumulated wealth to descendants is deeply embedded. It appeals to the fundamental biological urge to protect your offspring and propagate your genes. Though only a small minority of estates are subject to inheritance tax in Britain as it currently stands, opinion polls consistently find that the majority of people oppose it. Instinct seems to override common sense. VAT falls disproportionately on people with low incomes, but it’s far less hated.
Understandable sensitivity around issues relating to death make it difficult to discuss, but it’s time this conventional wisdom was held up to proper scrutiny. Yes, the desire to pass on property to your descendants may be natural – but why should we be slaves to our biology? Social progress has frequently depended on our ability to transcend individualistic urges and work together for the common good.
In contemporary times, most people agree that tax should facilitate transfer of wealth from those who “have” to those who “need”.
…In the UK, official statistics suggest around £77bn is passed on in inheritance each year (tax avoidance means the real amount could be even higher). That’s money that no living being has a moral claim to, according to standard justifications of wealth inequality and private property… It could provide the kind of comprehensive welfare state that meant nobody had to worry about their family after they passed away – because there would always be a safety net.