Age‐related taxation of bequests in the presence of a dependency risk

This paper studies the design of optimal linear taxation bequests when individuals differ in wage as well their risks both mortality and old-age dependance. We assume that government cannot distinguish between motives, is whether resulted from precautionary reasons or pure joy giving reasons. Instead, we it only observes timing bequests, they are made early life late life. show that, if utilitarian, should be given priority over depends on magnitude insurance redistributive concerns. While efficiency concern unambiguously recom- mends concerns yield ambiguous results. indeterminacy comes fact case death, ob- serve health status deceased. Whether specific relationships wages death dependence, concavity utility function. If Rawlsian, to tax survival chances poorest agents very low. survive, but remain autonomous low, then con- tribute relatively less than extremely concave.