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Long-run inheritance tax and capital income tax with rational altruism

Author

Listed:
  • Pascal Belan

    (Thema, CY Cergy Paris Université)

  • Erwan Moussault

    (Thema, CY Cergy Paris Université)

Abstract

We consider a two-period overlapping generation model with rational altruism à la Barro. The government finances public spending with taxes on labor income, capital income and inheritance. We show that, in the long-run, inheritance tax and capital income tax are generally different from zero, even if the optimal tax policy leads to the modified Golden-rule.

Suggested Citation

  • Pascal Belan & Erwan Moussault, 2021. "Long-run inheritance tax and capital income tax with rational altruism," Economics Bulletin, AccessEcon, vol. 41(1), pages 7182-7191.
    • Handle: RePEc:ebl:ecbull:eb-20-00594
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    inheritance tax; capital income tax; altruism.;
    All these keywords.

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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