Abstract

http://ssrn.com/abstract=1916589
 


 



A Wealth Tax on the Rich to Bring Down Public Debt? Revenue and Distributional Effects of a Capital Levy


Stefan Bach


German Institute for Economic Research (DIW Berlin)

Martin Beznoska


German Institute for Economic Research (DIW Berlin)

Viktor Steiner


German Institute for Economic Research (DIW Berlin)

August 2011


Abstract:     
The idea of higher wealth taxes to finance the mounting public debt in the wake of the financial crises is gaining ground in several OECD countries. We evaluate the revenue and distributional effects of a one-time capital levy on personal net wealth that is currently on the German political agenda. We use survey data from the German Socio-Economic Panel (SOEP) and estimate the net wealth distribution at the very top, based on publicly available information about very rich Germans. Since net wealth is strongly concentrated, the capital levy could raise substantial revenue, even if relatively high personal allowances are granted. We also analyze the compliance and administrative costs of the capital levy.

Number of Pages in PDF File: 24

Keywords: capital levy, wealth distribution, microsimulation

JEL Classification: H24, D31, H22

working papers series





Download This Paper

Date posted: August 25, 2011  

Suggested Citation

Bach, Stefan and Beznoska, Martin and Steiner, Viktor, A Wealth Tax on the Rich to Bring Down Public Debt? Revenue and Distributional Effects of a Capital Levy (August 2011). Available at SSRN: http://ssrn.com/abstract=1916589 or http://dx.doi.org/10.2139/ssrn.1916589

Contact Information

Stefan Bach (Contact Author)
German Institute for Economic Research (DIW Berlin) ( email )
Mohrenstraße 58
Berlin, 10117
Germany
Martin Beznoska
German Institute for Economic Research (DIW Berlin) ( email )
Mohrenstraße 58
Berlin, 10117
Germany
Viktor Steiner
German Institute for Economic Research (DIW Berlin) ( email )
Mohrenstraße 58
Berlin, 10117
Germany
Feedback to SSRN


Paper statistics
Abstract Views: 195
Downloads: 34

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.282 seconds