Abstract:

Due to a decision of the German supreme court the current system of evaluating assets within the inheritance tax is unconstitutional. It is shown that it is not only the way of evaluating but the whole current system that lacks a solid fiscal systematic and economic fundament and might be therefore itself unconstitutional. In order to avoid these problems, the article suggests to abolish the inheritance tax and to raise the income tax in order to achieve tax revenue neutrality.

JEL-Klassifizierung: H20, H24