History of U.S. Wealth Transfer Tax System
Wealth transfer taxes have been part of the U.S. Federal tax system since 1797.
This overview presents data about the estate and gift tax, a brief discussion of possible economic effects of the tax, and a short summary of present law estate and gift tax rules.
- Overview
- Wealth transfer taxes have been part of the U.S. Federal tax system since 1797.
- Before World War I
- While States extensively used transfer taxes at death for various purposes, Federal taxes on transfers at death in the United States, for most of its history, were imposed primarily to finance wars or the threat of war.
- WWI - WWII
- The commencement of World War I caused revenues from tariffs to fall.
- After WWII
- The 1942 solution to the community property problem was viewed as complex.
