Inheritance taxes

Levies on the assets of those who die. In theory, this can help to ensure that societies stay meritocratic. But they tend to be unpopular with middle-class voters who hope to pass on their assets (usually in the form of houses) to their children. Governments also create exemptions to prevent small business and farms from being broken up on the owner’s death. Accordingly, the OECD calculated in 2021 that only 0.5% of all government tax revenues came from this source, on average. See also wealth tax.