Download This PaperWealth Tax Mobility and Tax Coordination
62 Pages Posted: 21 Aug 2020 Last revised: 16 Oct 2023
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Wealth Tax Mobility and Tax Coordination
Paraísos Fiscales, Wealth Taxation, and Mobility
Date Written: August 16, 2020
Abstract
We study the effects of decentralized wealth taxation on mobility and the effectiveness
of tax coordination at mitigating tax competition. We exploit the reintroduction of the
Spanish wealth tax, after which all regions except Madrid levied positive tax rates. We
find the mobility responses to wealth taxes are within the range of prior estimates with
respect to income taxes. However, wealth tax mobility responses generate losses to
personal income tax revenues that are six times larger than the direct losses to wealth
taxes. Madrid could achieve higher total regional revenues by agreeing to a harmonized
positive tax rate.
Keywords: Fiscal Decentralization, Fiscal Federalism, State and Local Taxation, Wealth Taxes, Mobility, Inequality, Tax Havens, Evasion
JEL Classification: E21, H24, H31, H73, J61, R23
Suggested Citation: Suggested Citation
CESifo (Center for Economic Studies and Ifo Institute) ( email )
Poschinger Str. 5
Munich, DE-81679
Germany
HOME PAGE: http://www.uky.edu/~drag222/
CESifo (Center for Economic Studies and Ifo Institute) ( email )
Poschinger Str. 5
Munich, DE-81679
Germany
Clara Martínez-Toledano
Columbia University - Columbia Business School, Economics ( email )
420 West 118th Street
New York, NY 10027
United States