A 100% inheritance tax would encourage entrepreneurial behavior and force young people to take risks that they wouldn't otherwise. Capital would operate more efficiently if everyone was on the market in that way. In fact, the inheritance tax would be the only tax if it was total; there would be no other tax burden in one's entire life.
> entrepreneurial behaviour and force young people to take risks that they wouldn't otherwise
Or get them stuck in a permanent debt cycle.
> the inheritance tax would be the only tax if it was total; there would be no other tax burden in one's entire life.
Wouldn't everyone be incentivized to spend as much as they feasibly can before they die and not accumulate too much wealth?
I guess it depends on the specific implementation but the optimal approach would be to take on as much debt as you can to keep your effective net worth close to 0. So even a 100% tax on that might not result in a lot of revenue...