Breaking the Cycle of Wealth Inequality: A Progressive Taxation System on Wealth Inheritance

Abstract

This study examines the potential of implementing a progressive estate taxation model in Indonesia to reduce wealth inequality. Using a conceptual review paper methodology and drawing on existing research, the study analyzes the importance of progressive estate taxation in addressing wealth disparities. It proposes a framework for implementing a progressive estate taxation system in Indonesia, emphasizing its potential benefits in reducing wealth inequality and promoting economic growth. The findings indicate that a progressive estate taxation system, particularly on wealth inheritance, could significantly impact wealth inequality in Indonesia. The study highlights the influential role of wealth concentration and inheritance in perpetuating inequality, underscoring the urgent need for implementing a progressive taxation system in the country. It discusses the implications of these findings for Indonesia's economic and social development and offers insights for policymakers and researchers interested in reducing wealth disparities. Overall, this study contributes to the discourse on the significance of progressive estate taxation in addressing wealth disparities and recognizes the importance of future empirical research to support and validate these conceptual findings.