Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/67482
Authors: 
Schnellenbach, Jan
Year of Publication: 
2012
Series/Report no.: 
Freiburger Diskussionspapiere zur Ordnungsökonomik 12/5
Abstract: 
This paper surveys possible motivations for having a net wealth tax. After giving a short overview over the state of wealth taxation in OECD countries, we discuss both popular arguments for such a tax, as well as economic arguments. It is argued that classical normative principles of taxation known from public economics cannot give a sound justification for a net wealth tax. The efficiency-related effects are also discussed and shown to be theoretically ambiguous, while empirical evidence hints at a negative effect on GDP growth. Finally, it is argued that despite of widespread and persistent lobbying for a revitalization of the net wealth tax, this is unlikely to happen due to political economy constraints.
Subjects: 
net wealth tax
wealth
inequality
redistribution
JEL: 
H24
D31
H23
H21
H22
Document Type: 
Working Paper

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