Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/180289 
Year of Publication: 
2018
Series/Report no.: 
CESifo Working Paper No. 7027
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
A recent Spanish tax reform granted regions the authority to set income tax rates, resulting in substantial tax differentials. We use individual-level information from Social Security records over a period of one decade. Conditional on moving, taxes have a significant effect on location choice. A one percent increase in the net of tax rate for a region relative to others increases the probability of moving to that region by 1.7 percentage points. Focusing on the stock of top-taxpayers, we estimate an elasticity of the number of top taxpayers with respect to net-of-tax rates of 0.85. Using this elasticity, a theoretical model implies that the mechanical increase in tax revenue due to higher tax rates is larger than the loss in tax revenue from the out-ow of migration.
Subjects: 
migration
taxes
mobility
rich
fiscal decentralization
JEL: 
H24
H31
H73
J61
R23
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.