Billionaire Bill Gates, in a 2019 interview, supported bringing back a regulation in the US to require the super-rich to pay a 55 per cent tax when they inherit their family fortune.
Proponents of an inheritance or estate tax say it reduces inequality and creates a meritocratic society by chipping away at the enormous advantages the children of the wealthiest families enjoy by an accident of birth. Many large economies levy such a tax on their richest citizens; India does not.
Large inheritances are taxed at 40 per cent in the US and the UK. Germany is at 50 per cent, Japan at 55 per cent and France at 60 per cent. Even Brazil and South Africa levy some form of inheritance or estate tax, but at lower rates.
Studies show that there may be some positives in terms of motivating billionaire children too. Those with a large inheritance are four times more likely to leave the labour force than those with a smaller one, according to a 1993 study entitled ‘The Carnegie Conjecture: Some Empirical Evidence,’ from authors Douglas Holtz-Eakin, David Joulfaian and Harvey S Rosen.
One of the world’s wealthiest people, Warren Buffet, famously says that rich people should only leave their children "enough to do anything, but not enough to do nothing."
It is not clear if Indian billionaires will feel quite the same.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →
Quarterly Starter
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Access to Exclusive Premium Stories Online
Over 30 behind the paywall stories daily, handpicked by our editors for subscribers


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app