Estate Tax

In the United States, an estate tax is a government levy on the value of a person’s property after death. It applies to the portion of an estate that exceeds a legally defined exclusion amount, and it must be paid before the estate can be passed to heirs. Wayne Grudem describes it as the “death tax” and questions whether it aligns with biblical principles of private ownership and inheritance.¹

How Does the Estate Tax Work?

Grudem explains that the estate tax has historically affected estates above a certain threshold, often with significant rates. For example, under the 2011 rate schedule, estates valued at several million dollars could face a tax of more than 50 percent on amounts exceeding the exclusion limit. He gives the example of a small business owner with an estate worth $2 million who, after deductions, could owe $550,000 in taxes. Because much of that estate might be tied up in property or a business rather than cash, heirs are sometimes forced to sell family assets simply to cover the tax bill. Grudem contends that this practice unfairly penalizes working families who have already paid income and other taxes on the same wealth during their lifetimes and that it undermines hard work and savings by discouraging owners from growing their businesses.²

What Does Scripture Teach about Inheritance?

Grudem points to biblical examples to argue that inheritance is both normal and endorsed by Scripture. Proverbs teaches that “a good man leaves an inheritance to his children’s children” (Proverbs 13:22), and another passage notes, “House and wealth are inherited from fathers” (Proverbs 19:14). God gave Moses detailed inheritance laws stating that wealth should pass through family lines: if a man had no son, his property passed to his daughter, then to his brothers, and so on (Numbers 27:8–11). Grudem notes that in no case did the government claim any share of the inheritance. He also cites Ezekiel 46:18, which commands that rulers “shall not take any of the inheritance of the people” and that they must provide for their sons “out of [their] own property” so that others are not dispossessed. These passages, he argues, uphold a moral principle that property should belong to individuals and families, not to the state.³

Who Owns Property—Individuals or the State?

At the core of Grudem’s argument is the question of ownership. He concludes that Scripture clearly supports private ownership and responsibility over collective or government control. The estate tax, in his view, wrongly assumes that the government has a claim to a portion of property earned honestly and already taxed. He writes that one defense of the tax is that it prevents “excessive” wealth concentration, but asks, “Who is to decide what is ‘excessive’?” He warns that transferring wealth from families to the government only strengthens centralized power while reducing private charitable giving and economic growth. Grudem concludes that a more powerful and increasingly wealthy government is more harmful to a nation than many wealthy families who use their resources for productive business and generous giving. He therefore calls for the estate tax to be permanently repealed.⁴

References

Wayne A. Grudem, Politics – According to the Bible: A Comprehensive Resource for Understanding Modern Political Issues in Light of Scripture (Grand Rapids: Zondervan, 2010), 304–305.
Grudem, Politics – According to the Bible, 308–309.