Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 25, 2023 erstellt
Beschreibung:
This paper aims to contribute to the literature on the impact of net wealth taxes on social fairness. The model proposed considers an overall incidence approach where the relevant variable, the adjusted disposable income, incorporates the value of public expenditure. Using numerical simulations applied to a hypothetical economy, the paper finds that the introduction of a net wealth tax tends to improve social inequality. Factors affecting this result are the initial distribution of income, the level of progressivity of both net wealth tax and personal income tax, and the way in which public spending is distributed by income bracket. However, the paper also finds that this type of taxation may increase the weighted aggregate poverty gap, as well as the percentage of the population that is below the poverty line. This impact occurs even if the percentage of the population leaving the jurisdiction for tax reasons is significatively small, particularly if the net wealth tax entails a slight contraction in taxable income. Ultimately, the establishment of a net wealth tax has the effect of making countries more equal but also poorer