Publication
Title
Vertical and horizontal equity of wealth taxes : an assessment from a joint income-wealth perspective
Author
Abstract
Despite an established theoretical literature on (optimal) wealth taxation, the empirical literature is still scarce. Previous studies usually focus on country case studies and a specific type of wealth tax in isolation. This paper analyses from a cross-country perspective the distributional effects of the mix of taxes on wealth, on capital income and on transfers of wealth. Moreover, we use the joint distribution of income and annuitised wealth as our analytical framework. To this end we combine data of the Eurosystem Household Finance and Consumption Survey with the tax-benefit microsimulation model EUROMOD, covering six countries: Belgium, Germany, France, Finland, Italy and Spain. Results indicate that existing wealth taxes do not contribute to vertical and horizontal equity: they are often progressive but do not achieve any significant redistribution due to the low revenues they generate and they imply a much lower burden on those deriving their living standard predominantly from wealth than on those who derive it mainly from income.
Language
English
Source (journal)
Economics letters. - Amsterdam
Publication
Amsterdam : 2024
ISSN
0165-1765
DOI
10.1016/J.ECONLET.2023.111438
Volume/pages
234 (2024) , p. 1-5
Article Reference
111438
ISI
001127948300001
Full text (Publisher's DOI)
Full text (open access)
The author-created version that incorporates referee comments and is the accepted for publication version Available from 23.05.2024
Full text (publisher's version - intranet only)
UAntwerpen
Faculty/Department
Research group
Project info
Antwerp Interdisciplinary Platform for Research into Inequality: In search of equality. A socioeconomic examination within a global and historical framework (AIPRIL).
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
Web of Science
Record
Identifier
Creation 09.01.2024
Last edited 18.01.2024
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