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Social and Behavioral Sciences Commons

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Western University

Optimal taxation

Publication Year

Articles 1 - 3 of 3

Full-Text Articles in Social and Behavioral Sciences

2022-14 Use It Or Lose It: Efficiency And Redistributional Effects Of Wealth Taxation, Fatih Guvenen, Gueorgui Kambourov, Burhan Kuruscu, Sergio Ocampo, Daphne Chen Jan 2022

2022-14 Use It Or Lose It: Efficiency And Redistributional Effects Of Wealth Taxation, Fatih Guvenen, Gueorgui Kambourov, Burhan Kuruscu, Sergio Ocampo, Daphne Chen

Department of Economics Research Reports

How does wealth taxation differ from capital income taxation? When the return on investment is equal across individuals, a well-known result is that the two tax systems are equivalent. Motivated by recent empirical evidence documenting persistent return heterogeneity, we revisit this question. With heterogeneity, the two tax systems typically have opposite implications for both efficiency and inequality. Under capital income taxation, entrepreneurs who are more productive and therefore generate more income pay higher taxes. Under wealth taxation, entrepreneurs who have similar wealth levels pay similar taxes regardless of their productivity, which expands the tax base, shifts the tax burden toward …


2000-17 Optimal Tax Mix In A Two-Sector Growth Model With Transitional Dynamics, James B. Davies, Jie Zhang, Jinli Zeng Jan 2000

2000-17 Optimal Tax Mix In A Two-Sector Growth Model With Transitional Dynamics, James B. Davies, Jie Zhang, Jinli Zeng

Department of Economics Research Reports

No abstract provided.


Endogenous Growth And The Choice Of Tax Base, Carlo Perroni Jan 1993

Endogenous Growth And The Choice Of Tax Base, Carlo Perroni

Department of Economics Research Reports

No abstract provided.