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Behavioral Responses to Special Tax Regimes for the Super-Rich: Insights from Swiss Rich Lists

Author

Listed:
  • Baselgia, Enea
  • Martínez, Isabel Z.

Abstract

We collect, digitize, and supplement Swiss rich lists published in the “BILANZ†magazine since 1989. Based on this new dataset, we estimate the sensitivity of the location choice of super-rich foreigners to a preferential tax scheme, under which wealthy foreigners are taxed on their expenses, rather than their true income and wealth. We are the first to evaluate this infamous policy (which bears similarities with “non-dom†taxation in the UK), and show that when some Swiss cantons abolished this practice, their stock of super-rich foreigners dropped by 30% as a consequence. We find no response for the unaffected Swiss super-rich.

Suggested Citation

  • Baselgia, Enea & Martínez, Isabel Z., 2023. "Behavioral Responses to Special Tax Regimes for the Super-Rich: Insights from Swiss Rich Lists," CEPR Discussion Papers 17967, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:17967
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    More about this item

    Keywords

    Super-rich; Tax mobility; Preferential taxation; Tax competition; Wealth inequality;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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