The inheritance tax is categorized as which type of tax?

The inheritance tax is categorized as a wealth tax because it is applied to the transfer of wealth from one individual to another upon death. This type of tax specifically targets the increase in wealth that individuals receive through inheritances, meaning it is closely related to the assets or wealth of the decedent. Wealth taxes are designed to apply to individuals' net worth and focus on accumulated assets rather than transactions or income generation.

This classification is important in understanding taxation systems, as wealth taxes aim to address inequalities in wealth distribution and can play a role in social policy. Acknowledging the inheritance tax as a wealth tax underlines the broader concept of how wealth is taxed differently than income or consumption, which are typically addressed by sales taxes, property taxes, or corporate taxes.