Arbeitspapier
Optimal Taxation of Capital in the Presence of Declining Labor Share
We analyze the implications of the decline in labor’s share in national income for optimal Ramsey taxation. It is optimal to accompany the decline in labor share by raising capital taxes only if the labor share is falling because of a decline in competition or other mechanisms that raise the share of pure profits. This result holds under various alternative institutional arrangements that are relevant for optimal taxation of capital income. A quantitative application to the U.S. economy shows that soaring profit shares since the 1980's can justify a significantly increasing path of capital income taxes.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 9101
- Klassifikation
-
Wirtschaft
Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General
Policy Objectives; Policy Designs and Consistency; Policy Coordination
Fiscal Policy
- Thema
-
capital income tax
labor share
profit share
market power
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Atesagaoglu, Orhan Erem
Yazici, Hakki
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and Ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2021
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Atesagaoglu, Orhan Erem
- Yazici, Hakki
- Center for Economic Studies and Ifo Institute (CESifo)
Entstanden
- 2021
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