This paper estimates the effect of marginal tax rates on demands for various financial assets, using the 1983-1989 Survey of Consumer Finances (SCF) panel. In the crosssection, marginal tax rates appear to have a strong and statistically significant influence on portfolio allocations, even after controlling for income and wealth. For example, people with high tax rates tend to hold larger share...

Abstract We study how a capital income tax and wealth affect an investor's valuation of company's stock in efficient international market. Using one-period model, model infinite horizon where the asset generates future cash flow that is martingale, finite we abandon martingale assumption, find and/or do not lead investors to value investment differently from untaxed investors. Investors who see...

In this policy brief, Allan Odden argues that it may be time to redesign state and district school finance systems to align them more closely to the standards-based education reform movement and the national goal of teaching all students to rigorous performance standards. Historically, a major focus of the school finance policy debate was the fiscal disparities across school districts within st...

This paper develops a two-regional growth model with amenity, capital accumulation and regional public goods with public goods and fiscal policies. The economy consists of two regions and each region consists of the industrial sector and public sector. The industrial sector provides goods in perfectly competitive markets. The public sector, which is financed by the regional government’s tax inc...

This chapter offers an overview of the empirical and theoretical research on the long-run evolution of wealth and inheritance. Wealth–income ratios, inherited wealth, and wealth inequalities were high in the eighteenth to nineteenth centuries up until World War I, then sharply dropped during the twentieth century following World War shocks, and have been rising again in the late twentieth and e...

The extent of and changes in inter-generational mobility of wealth are central to understanding dynamics of wealth inequality but hard to measure. Using estate tax returns data, we observe that the share of women among the very wealthy (top 0.01%) in the United States peaked in the late 1960s, reaching almost 50%. Three decades on, women’s share had declined to one third, a return to pre-war le...

In this paper, I examine the role of a wealth tax in context UK's existing taxes on wealth. First, discuss several ways which UK could be said to already, and set out two possible directions for reforming these taxes, highlighting policies that are merited under either approach. Second, consider whether what circumstances broad-based ownership – ‘wealth tax’ justified instead or addition reform...

Amy Stubbendick for outstanding research assistance in the work reported here. Barry Johnson has long been an essential player in the work underlying this paper, and he provided essential data used in the analysis. The opinions expressed here are the responsibility of the author alone and do not necessarily reflect those of the Board of Governors of the Federal Reserve System. Most often, econo...