Australia is an interesting example of the politics of inheritance taxes. We used to have them until a conservative state government abolished them in 1978, which triggered a race to the bottom – abolition in all other states. It’s easier to move states than countries, especially if you have no job or children in school, and the federal government does not have the constitutional authority to impose an inheritance tax of its own. The abolition campaign was assisted by using the term “death duties” and framing the tax as a punishment for those grieving the loss of a family member. I think the idea is still extremely unpopular as a result.
