We show the unique form that must be taken by a tax system based entirely on realization accounting to implement a uniform capital income tax, or, equivalently, a uniform wealth tax. This system combines elements of an accrual based capital income tax and a traditional cashflow tax, having many of the attributes of the latter while still imposing a tax burden on marginal capital income. Like th...

Since the early nineties, the Dutch tax system allows for a tax-favored form of risk free savings through employer-sponsored savings plans (ESSPs). Under certain conditions and up to a certain amount, the contributions to this plan are tax-deductible, and the returns as well as the withdrawals are tax-free. This makes these plans extremely attractive, with real after-tax returns by far exceedin...

This paper analyzes optimal progressive capital income taxation in the infinite horizon dynastic model. It shows that progressive taxation is a much more powerful and useful tool to redistribute wealth than linear taxation on which previous literature has focused. We consider progressive capital income tax schedules taking a simple two-bracket form with an exemption bracket at the bottom and a ...

I assess the costs of administering a wealth tax for taxpayers and authority in UK context, based on evidence from existing taxes comprehensive that have been imposed other countries. My central estimate is well-designed generates to 0.1 per cent taxable 0.05 wealth. discuss how these depend design choices. findings can inform revenue modelling help evaluate desirability taxes.

This paper develops a positive theory of growth and redistribution in which agents care about both their absolute and relative levels of consumption. As in Alesina and Rodrik (1994), public goods are productive and are financed by a tax on capital. Equilibrium tax policy is chosen by a pivotal voter and is shown to reflect the strength of status preferences and the distributions of wealth and p...

This paper examines the validity of the “folk” intuition that endogenous formation of jurisdictions is likely to create stratification of households according to their wealth. More specifically, we examine a simple model of jurisdiction formation, close in spirit to that of Whestoff ([27]), in which a continuum of unequally wealthy households endowed with the same preferences for one public goo...