The $250 Billion Price Tag Associated with Gift Tax Repeal

11 Pages Posted: 22 Feb 2017

Date Written: January 23, 2017

Abstract

For close to a century, many commentators, academics, and politicians have considered the gift tax as an important backstop to preserve the integrity of the nation’s estate tax. Indeed, in the absence of a viable gift tax, taxpayers could easily circumvent their estate tax obligations.

But what these very same people often fail to realize is that the gift tax also serves an entirely different, yet significant purpose as well: it acts as an integral backstop to ensure the progressive nature of the nation’s income tax. Indeed, in the absence of a viable gift tax, taxpayers could easily circumvent their income tax obligations.

In light of the gift tax’s historic roles, this analysis contends that even if Congress repeals the estate tax, it should retain the gift tax; otherwise, untold damage may be perpetrated against the income tax, producing an estimated revenue shortfall of $250 billion.

Suggested Citation

Soled, Jay, The $250 Billion Price Tag Associated with Gift Tax Repeal (January 23, 2017). Available at SSRN: https://ssrn.com/abstract=2921123 or http://dx.doi.org/10.2139/ssrn.2921123

Jay Soled (Contact Author)

Rutgers University ( email )

1 Washington Park
Newark, NJ 07901-1825
United States
(973) 353-1727 (Phone)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
132
Abstract Views
651
rank
264,291
PlumX Metrics