ABSTRACT
The unification of transfer taxes institutionalized a tradeoff between inter vivos transfers and the value of the estate an individual can bequeath without incurring a tax liability. The greater the value of gifts made during life, the smaller the value of the estate tax exemption at death. The tax on estates is one example from a larger category of taxation known as transfer taxes. Transferrable assets include cash, investments, land, real estate, and some intangible resources, such as intellectual property. Transfers are classified—and tax liabilities are determined—based on when the transfer occurs. Historical evidence indicates that some form of inheritance taxation was implemented in ancient Egypt. Beyond disagreements over the bounds of private property rights and inequality, opponents of transfer taxes often raise the issue of fairness. Transfer taxes are a negligible contributor to the federal treasury, but that has not stopped them from rousing robust political conflicts that are just as impassioned as those centered on more far-reaching taxes.
