We study how declared wealth responds to changes in tax rates. Exploiting rich intranational variation Switzerland, we find a 1 percentage point drop canton’s rate raises reported taxable by at least 43 percent after 6 years. Administrative records of two cantons with quasi-randomly assigned differential reforms suggest that 24 the effect arises from taxpayer mobility and 21 concurrent rise hou...

ABSTRACT The international debate on wealth taxation has been subject to renewed interest amid new proposals coming out of the US electoral cycle and salience inequality. This article reviews case for taxing its transfer across generations (wealth inheritance taxes), analyzing their design from an comparative perspective, extracting lessons Brazil. long-debated “Tax Large Fortunes” never implem...

409 National Tax Journal Vol. LV, No. 3 September 2002 Abstract This paper investigates the determinants of corporate expatriations. American corporations that seek to avoid U.S. taxes on their foreign incomes can do so by becoming foreign corporations, typically by “inverting” the corporate structure, so that the foreign subsidiary becomes the parent company and the U.S. parent company becomes...

We study a system of $N$ agents, whose wealth grows linearly, under the effect stochastic resetting and interacting via tax-like dynamics -- all agents donate part their wealth, which is, in turn, redistributed equally among others. This mimics socio-economic scenario where people have fixed incomes, suffer individual economic setbacks, pay taxes to state. The always reaches stationary state, s...

S ince the early 2000s, research by Thomas Piketty and Emmanuel Saez (and their coauthors, including Anthony Atkinson and Gabriel Zucman) has revolutionized our understanding of income and wealth inequality. The crucial point of departure for this revolution is the extensive data they have used, based largely on administrative tax records. Piketty’s (2014) Capital in the Twenty-First Century is...

This paper presents a two-country dynamic perfect foresight Ricardian model with wealth effects to study the relationship between government spending financed by alternative taxation, the terms of trade and welfare. An increase in domestic government spending financed by a distortionary capital income tax leads the real exchange rate initially to appreciate (a pure demand effect). But along the...

This paper constructs a stochastic version of an endogenously growing economy with a public good that raises the productivity of private capital. We explore how growth and welfare are influenced by changes in the mean and variance of productive public spending under two alternative financing methods, mixed money–bond financing and wealth-tax financing. In addition, to evaluate the differences b...

We use responses to survey questions in the 2010 Italian Survey of Household Income and Wealth that ask consumers how much of an unexpected transitory income change they would consume. The marginal propensity to consume (MPC) is 48 percent on average. We also find substantial heterogeneity in the distribution, as households with low cash-on-hand exhibit a much higher MPC than affluent household...

In structuring this conference, the organizers have made the sensible decision to devote separate sessions to the problems of developing and developed countries. When attempting to confront unsustainable fiscal policies, developed economies are relieved of many of the economic constraints with which developing countries must deal. With greater wealth, more stable and credible governments, and m...

Despite its complexities, the health savings account (HSA) is a powerful and growing element of the U.S. financial landscape. In the future, employers will likely be expected to provide tax-advantaged savings programs for employees' current and future medical expenses. This article discusses investment lineup issues that must be addressed in order to optimize HSAs to help participants achieve s...