Scrapped inheritance tax linked to stronger growth in private firms with heirs, shows study in Sweden

After Sweden removed inheritance and gift taxes in 2005, private firms with potential family successors grew faster, invested more, and paid higher corporate taxes than firms without natural heirs, according to a new white paper from the Stockholm School of Economics. The study adds empirical evidence to a policy debate often dominated by ideology and comes as several European countries debate inheritance tax reforms. The research is published as a working paper in the SSRN Electronic Journal.