Labor-dependent capital income taxation

Sagiri Kitao

研究成果: Article

7 引用 (Scopus)

抄録

Capital taxation which is negatively correlated with labor supply is proposed. This paper uses a life-cycle model of heterogeneous agents that face idiosyncratic productivity shocks and shows that the tax scheme provides a strong work incentive when households possess large assets and high productivity later in the life-cycle, when they otherwise would work less. The system also adds to the saving motive of prime-age households and raises aggregate capital. The increased economic activities expand the tax base and the revenue neutral reform results in a lower average tax rate. The negative cross-dependence generates a sizable welfare gain in the long-run relative to the tax system that treats labor and capital income separately as a tax base. The reform, however, can hurt the elderly during the transition with a high marginal tax on their capital income.

元の言語English
ページ(範囲)959-974
ページ数16
ジャーナルJournal of Monetary Economics
57
発行部数8
DOI
出版物ステータスPublished - 2010 11
外部発表Yes

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Labor
Tax base
Capital income taxation
Income
Household
Tax
Productivity shocks
Life cycle
Capital taxation
Assets
Revenue
Labor supply
Tax system
Work incentives
Tax rate
Economic activity
Heterogeneous agents
Welfare gains
Productivity
Life-cycle model

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

これを引用

Labor-dependent capital income taxation. / Kitao, Sagiri.

:: Journal of Monetary Economics, 巻 57, 番号 8, 11.2010, p. 959-974.

研究成果: Article

Kitao, Sagiri. / Labor-dependent capital income taxation. :: Journal of Monetary Economics. 2010 ; 巻 57, 番号 8. pp. 959-974.
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