Nations have taxed property transfers at death for thousands of years. The ancient Egyptians, Caesar’s Roman Empire, and feudal Europe all had mechanisms for collecting revenue from estate transfers. By comparison, the modern U.S. estate tax regime is relatively young. This year, it celebrates its 100th birthday. Congress enacted the tax as part of the Revenue Act of 1916 on September 8 of that year.

Originally enacted to help finance involvement in World War I, the federal estate tax has had its twists and turns over the years - including top rates swinging from 10% to 77%. However, the basic framework has remained the same: each estate is taxed on the wealth it transfers to its beneficiaries (as opposed to the beneficiaries being taxed on the shares they receive). The federal estate tax regime currently taxes an estate’s value in excess of $5.45 million at a rate of 40%.

The estate tax’s history has been full of controversy, despite the fact that it often applies to fewer than 2% of people dying each year and is a small source of revenue compared to other federal tax regimes. Its critics have labeled it a “death tax” and derided it as a double tax on assets that have already been taxed as income. Its supporters have seen it as a reasonable and fair source of revenue. In its defense, Teddy Roosevelt proposed that “the prime object should be to put a constantly increasing burden on the inheritance of those swollen fortunes which it is certainly of no benefit to this country to perpetuate.” Why such strong opinions on a policy that affects such few people? An opinion on the estate tax might simply mirror one’s views on taxation and property rights in general.