Behavioural responses to a wealth tax electrónico Arun Advani, Hannah Tarrant
By: Advani, Arun
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Contributor(s): Tarrant, Hannah.
Material type: 
ArticleSubject(s): IMPUESTO SOBRE EL PATRIMONIO | RIQUEZA | RENTAS ALTAS | IMPUESTOS | REINO UNIDO
In:
Fiscal Studies v. 42, issue 3-4, September-December 2021, p. 509-537Summary: In this paper, we review the existing empirical evidence on how individuals respond to the incentives created by a net wealth tax. Variation in the overall magnitude of behavioural responses is substantial: estimates of the elasticity of taxable wealth vary by a factor of 800. We explore three key reasons for this variation: tax design, context and methodology. We then discuss what is known about the importance of individual margins of response and how these interact with policy choices. Finally, we use our analysis to systematically narrow down and reconcile the range of elasticity estimates. We argue that a well-designed wealth tax would reduce the tax base by 7–17 per cent if levied at a tax rate of 1 per cent.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Recursos electrónicos | IEF | IEF | OP 1472/2021/3/4-5 (Browse shelf) | Available | OP 1472/2021/3/4-5 |
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| OP 1472/2021/3/4-2 Public attitudes to a wealth tax | OP 1472/2021/3/4-3 The economic arguments for and against a wealth tax | OP 1472/2021/3/4-4 Ways of taxing wealth | OP 1472/2021/3/4-5 Behavioural responses to a wealth tax | OP 1472/2021/3/4-6 Why were most wealth taxes abandoned and is this time different? | OP 1472/2021/3/4-7 Who should pay a wealth tax? | OP 1472/2021/3/4-8 Valuation for the purposes of a wealth tax |
Resumen.
Disponible en el en formato electrónico en el Repositorio de la Biblioteca del IEF.
In this paper, we review the existing empirical evidence on how individuals respond to the incentives created by a net wealth tax. Variation in the overall magnitude of behavioural responses is substantial: estimates of the elasticity of taxable wealth vary by a factor of 800. We explore three key reasons for this variation: tax design, context and methodology. We then discuss what is known about the importance of individual margins of response and how these interact with policy choices. Finally, we use our analysis to systematically narrow down and reconcile the range of elasticity estimates. We argue that a well-designed wealth tax would reduce the tax base by 7–17 per cent if levied at a tax rate of 1 per cent.
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