Rent taxation and its intertemporal welfare effects in a small open economy

Arbeitspapier

Previous literature concludes that replacing wage taxation by taxes on a fixed factor or its rents benefits future generations. However, the effects of such steady-state gains on the transition generations have been left open. In this paper, we show that taxation of rents may also increase utility of the current generation provided tax revenues are earmarked to reduce wage taxes. In particular, a shift in the tax mix may yield an intergenerational Pareto-improvement when the initially prevailing tax mix is sufficiently skewed towards wage taxation.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 2158

Classification and Topics

• Classification: Wirtschaft ; Taxation and Subsidies: Incidence ; Fiscal Policy ; International Economic Order and Integration
• Subject: rent taxes ; capitalization ; transitional dynamics ; labor supply ; asset prices ; Kapitalertragsteuer ; Kapitalanlage ; Grundbesitz ; Arbeitsangebot ; Generationenbeziehungen ; Intertemporale Allokation ; Optimale Verteilung ; Wohlfahrtseffekt ; Kleines-offenes-Land ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Koethenbuerger, Marko ; Poutvaara, Panu
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/26202
• Last update: 10.03.2025, 11:44 AM CET