Optimal capital income taxation with means - tested benefits Cagri S. Kumru and John Piggott
By: Kumru, Cagri
.
Contributor(s): Piggott, John R.
Material type: 
ArticlePublisher: 2017Subject(s): CAPITAL | RENTA | RENDIMIENTOS DE CAPITAL | IMPUESTOS | IMPOSICION OPTIMA | EDAD DE JUBILACION | PENSIONES | MODELOS ECONOMETRICOS
In:
Scottish journal of political economy v. 64, n. 3, July 2017, p. 227-262Summary: This paper studies the interaction between capital income taxationand a meanstestedage pension. Our results document that the existence of a social insurance program financed from general revenue puts an upward pressure on the optimal tax rate. We also show that there is a negative relation between taper (benefitreduction) and optimal capital income tax rates. The potential welfare gain fromoptimizing capital taxation in the presence of a universal retirement transfer system is relatively higher. However, when the transfer is substantially means tested, the gain is lower, because the means test effectively operates as a tax on retirement capital.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| IEF | OP 564/2017/3 (Browse shelf) | Available | OP 564/2017/3 |
Browsing IEF Shelves Close shelf browser
Disponible en línea a través del Instituto de Estudios Fiscales. Resumen. Bibliografía. Conclusión.
This paper studies the interaction between capital income taxationand a meanstestedage pension. Our results document that the existence of a social insurance program financed from general revenue puts an upward pressure on the optimal tax rate. We also show that there is a negative relation between taper (benefitreduction) and optimal capital income tax rates. The potential welfare gain fromoptimizing capital taxation in the presence of a universal retirement transfer system is relatively higher. However, when the transfer is substantially means tested, the gain is lower, because the means test effectively operates as a tax on retirement capital.
There are no comments for this item.