Concept Breakdown, Issue 6: DEI & Inheritance Tax

Concept Breakdown is a weekly newsletter by The Analysis (TA), explaining technical concepts that are in the news. The newsletter tries to educate readers on these key terms to avoid misinformation and promote informed discussions.

Diversity, Equity and Inclusion (DEI)

DEI stands for Diversity, Equity, and Inclusion. It's a framework that emphasizes creating an environment where everyone feels valued and respected. The goal of DEI is to make workplaces, schools, and communities fair, just, and enriching for everyone.

Here's a breakdown of each concept:

• Diversity refers to various human experiences, backgrounds, and identities within a group. This includes race, disability, ethnicity, gender, sexual orientation, etc.
• Equity focuses on fairness and ensuring everyone has equal opportunity to succeed. It means identifying and dismantling barriers that prevent certain groups from reaching their full potential.
• Inclusion creates a culture where everyone feels welcome, valued, and supported. It's about fostering a sense of belonging. So, everyone has a seat at the table.

Inheritance Tax

Inheritance tax is a levy imposed on assets or property transferred to legal heirs upon someone's death. Here's a breakdown of the concept:

Who pays it: Unlike an estate tax which is paid by the deceased's estate, inheritance tax is the responsibility of the recipient of the inheritance.

What's taxed: The tax applies to the value of the inherited assets, which could include things like property, money, investments, and even belongings.

How much is taxed: This depends on two main factors:

1. The value of the inheritance: The higher the value, the higher the potential tax burden.
2. Your relationship to the deceased: In some countries, close family members like spouses and children may benefit from exemptions or lower tax rates.

Countries with inheritance tax: Belgium, Japan, Germany, France