Distributional Effects of a Wealth Tax under Lifetime‐Dynastic Income Concepts*

Halvorsen, Elin; Thoresen, Thor Olav

doi:10.1111/sjoe.12392

Cited by 10 publications

(4 citation statements)

References 69 publications

(77 reference statements)

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“…Some articles interchange property tax with wealth tax. Halvorsen and Thoresen [14] analysed the Norwegian distributional effects of wealth tax under different income concepts. The study used the Norwegian administrative data for the period of 1993 to 2011.…”

Section: Literature Reviewmentioning

confidence: 99%

The Effect of Property Tax on Income Redistribution in Selected African Countries

Choga

Giwa

2023

Sustainability

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Tax plays an important role in the redistribution of income, and property tax is no exception. One key area that income redistribution curbs is the area of income inequality, and, statistically, most African countries have a high level of income inequality due to their high Gini coefficient. This study examines the effect of property tax on income redistribution in seven Africa countries from 1990 to 2019. The variables used in the study are property tax, Gini coefficient (proxy for income redistribution), income tax, employment rate, GDP per capita growth, and corruption. The panel autoregressive distributed lag (PARDL) was employed as the econometric technique approach. The findings of the study reveal that property taxes have a positive and significant relationship with income redistribution in the long run in the seven African countries studied. This study recommends the effective administration of property tax. If property tax is effectively administered, it can fulfil its redistributive role.

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Section: Literature Reviewmentioning

confidence: 99%

The Effect of Property Tax on Income Redistribution in Selected African Countries

Choga

Giwa

2023

Sustainability

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“…Based on the tax rules that applied in 2011, Halvorsen and Thoresen (2021) examine the distributional effects of the Norwegian wealth tax and show that a considerable share of the wealth tax is levied on individuals with low current (annual) income. However, when evaluated against lifetime rather than annual income, the wealth tax is born largely by high‐income taxpayers, such that the tax indeed fulfils its redistributive purposes.…”

Section: Institutional Settingmentioning

confidence: 99%

An imperfect wealth tax and employment in closely held firms

2022

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Fuelled by increasing inequality and rising fiscal deficits, the interest in wealth taxation has grown over recent years, both in the public debate and in academia. A key concern is that the wealth tax may reduce the amount of capital available to closely held firms and drag down their employment. Yet knowledge about the behavioural effects of a wealth tax is limited. A wealth tax is almost by construction imperfect, as the value of some assets is unobserved. In particular, intangible assets held by non‐traded firms are in practice tax‐exempt, giving firm owners an incentive to allocate wealth into their businesses, for example, in the form of (untaxed) human capital investments. We utilize rich Norwegian register data and a series of tax reforms implemented between 2007 and 2017 to study how a net wealth tax imposed on owners of small and medium‐sized businesses affects their firms' employment. Identification of causal effects is based on a saturated control function approach, fully isolating the influence of tax reforms. Our results indicate a positive causal relationship between the level of a household's wealth tax and subsequent employment growth in the taxpayers' closely held firms.

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“…In this study, we exploit a data set that covers the universe of taxpaying households in this Swiss canton of Lucerne over the years 2005-15. Given that Switzerland is one of few countries besides Norway (Halvorsen and Thoresen 2021;Fagereng et al 2020) and Spain (Durán-Cabré et al 2019) that still have a wealth tax, we observe administrative information on both income and wealth.…”

Section: Introductionmentioning

confidence: 99%

Joint Income-Wealth Inequality: Evidence from Lucerne Tax Data

Gallusser

Krapf

2022

Soc Indic Res

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Using tax data from the Swiss canton of Lucerne, we study how measures of economic inequality change if they account for income and wealth rather than income alone. Joint income-wealth, the sum of labor income and annuitized wealth, serves as a measure of combined inequality of income and wealth. Inequality measured using joint income-wealth is higher than measured using income alone. We refine existing annuitization techniques by introducing heterogeneous returns. The joint distribution of labor income and annuitized wealth displays strong tail dependence at the top and a negative association for negative annuitized wealth. A decomposition shows that the underlying marginal distributions of labor income and annuitized wealth account for most of joint income-wealth inequality, whereas their association matters only in the tails.

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Distributional Effects of a Wealth Tax under Lifetime‐Dynastic Income Concepts*

Cited by 10 publications

References 69 publications

The Effect of Property Tax on Income Redistribution in Selected African Countries

The Effect of Property Tax on Income Redistribution in Selected African Countries

An imperfect wealth tax and employment in closely held firms

Joint Income-Wealth Inequality: Evidence from Lucerne Tax Data

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