Economic researchers propose “basic inheritance” for all 18-year-olds in the amount of up to 20,000 euros

Created: 12/17/2021, 08:13 AM

By: Anne Hund

With the idea of ​​a basic inheritance, all 18-year-olds would receive start-up capital from the state, according to the suggestion of economic researchers.

© Monika Skolimowska / dpa-Zentralbild / dpa

While some inherit large sums of money, others go away empty-handed.

The German Institute for Economic Research explains how the state could create financial compensation here.

Some inherit * large sums of money, others get nothing.

As a result, the assets are distributed unequally at this point.

Researchers at the German Institute for Economic Research (DIW) have a proposal how this

can be reduced significantly according to their own calculations.

According to the DIW, the researchers propose a “

”.

This could be financed through an

so the idea.

Suggestion: basic inheritance of up to 20,000 euros for all 18-year-olds

"If we really want to create prosperity for everyone in the foreseeable future, then we should reduce the high level of wealth inequality in Germany through redistribution: by giving the non-owned half a basic inheritance to build up wealth, which is financed through taxes on high assets," says DIW tax expert Stefan Bach has his say in the communication.

The Gini coefficient, a statistical standard measure for measuring the inequality of a distribution, would decrease by five to seven percent, depending on how it was designed, according to the DIW of the calculations.

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Start-up capital from the state: DIW tax experts explain the idea of ​​a basic inheritance

According to the DIW announcement, the current coalition agreement provides for measures that are intended to

support

creation, such as promoting home ownership, improving company and private pension schemes and increasing the lump sum for savers in income tax. "This is going in the right direction, but should only reduce the large inequality in wealth moderately and in the long term," explains study author Stefan Bach, according to the press release. "More charming would be the idea of ​​a basic inheritance in which all 18-year-olds receive start-up capital from the state - not cash, of course, but with usage requirements for training and further education, the acquisition of home ownership, self-employment or business start-ups."

Also interesting:

How could the funding work?

Different scenarios

With a

, this

would cost around 15 billion euros per year, as the DIW announcement on the idea says.

Including further funding programs and relief from real estate transfer tax, this could be financed by

related

, according to the DIW;

According to the experts, a reform of the inheritance tax, a higher taxation of real estate profits and a wealth tax for the high net worth would come into question, as the communication says, among other things, on the possible financing proposals.

Source: Communication from DIW dated December 15 (www.diw.de.)

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