Equality of Opportunity and Inheritance Taxation

Abstract

In this chapter, the relationship between inheritance and equality of opportunity is examined within the context of the increasing socioeconomic inequality in recent years. While equality of opportunity is often cited as a justification for inheritance taxation, the relationship between inheritance and equality of opportunity is quite complex, depending both on how equality of opportunity is interpreted and how it is integrated with other normative ideals. The chapter begins by outlining the main versions of equality of opportunity and then turns its attention to John Rawls’ notion of fair equality of opportunity. This allows for a discussion of the tension between equality of opportunity and family autonomy, a central topic in debates on inheritance taxation. Next, the chapter examines Anne L. Alstott’s resource egalitarian treatment of inheritance taxation and her views on the implications for inheritance taxation of a single-minded focus on equality of opportunity. Finally, the chapter outlines Thomas Piketty’s recent proposal for a broader institutional scheme. Piketty’s work is here viewed as developing Rawlsian ideas, emphasizing how equality of opportunity must be integrated with other normative ideals and inheritance taxation with other forms of taxation.