A controversial issue is the incent

A controversial issue is the incentives created by an estate tax. Suppose that an individual is motivated it work hard during his lifetime to leave a large estate for his children. The presence of an estate tax might discourage his work effort. On the other hand, with an estate tax, a greater amount of wealth has to e accumulated to leave a given after-tax bequest, so the tax bequest, so the tax might induce the individual to work harder to maintain the net value of his estate. Consequently, the effect of an estate tax on a donor's work effort is logically indeterminate. Similarly, one cannot predict how the tax will affect the mount of saving. There is currently very little in the way of empirical evidence on these incentive issues.

A controversial issue is the incentives created by an estate tax. Suppose that an individual is motivated it work hard during his lifetime to leave a large estate for his children. The presence of an estate tax might discourage his work effort. On the other hand, with an estate tax, a greater amount of wealth has to e accumulated to leave a given after-tax bequest, so the tax bequest, so the tax might induce the individual to work harder to maintain the net value of his. estate. Consequently, the effect of an estate tax on a donor's work effort is logically indeterminate. Similarly, one can not predict how the tax will affect the mount of saving. There is currently very little in the way of empirical evidence on these incentive issues.

A controversial issue is the incentives created by an estate tax. Suppose that an individual is motivated it work hard. During his lifetime to leave a large estate for his children. The presence of an estate tax might discourage his work, effort. On the, other hand with an estate tax a greater, amount of wealth has to e accumulated to leave a given, after-tax bequest. So the, tax bequestSo the tax might induce the individual to work harder to maintain the net value of his estate. Consequently the effect,, Of an estate tax on a donor 's work effort is logically indeterminate. Similarly one cannot, predict how the tax will affect. The mount of saving. There is currently very little in the way of empirical evidence on these incentive issues.