What kind of taxes are estate and inheritance taxes classified under?

Estate and inheritance taxes are classified as wealth taxes. Wealth taxes are levied on an individual's net worth or the transfer of wealth rather than on income or consumption. Estate taxes are imposed on the value of a deceased person's estate before it is distributed to heirs, while inheritance taxes are charged to the heirs receiving the estate. These taxes are designed to redistribute wealth and can play a role in reducing inequality.

In contrast, sales taxes and consumption taxes relate primarily to transactions involving the purchase of goods and services, whereas excise taxes are applied to specific goods, such as alcohol or gasoline, usually for regulatory purposes. Therefore, categorizing estate and inheritance taxes under wealth taxes highlights their focus on the accumulation of wealth rather than consumption patterns or transactional activities.