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The long run effect of taxes on the distribution of top income shares: an empirical investigation

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  • Christoph Gorgas
  • Christoph A. Schaltegger

Abstract

We provide empirical evidence on the impact of personal income taxes and tax competition on income concentration in Switzerland. The fact that Swiss cantons have considerable taxing power enables us to study the effect of differences in the tax burden as well as in the pressure of tax competition on the distribution of top income shares within Switzerland. Using panel regressions covering all 26 Swiss cantons over the years 1917 to 2007 we find substantial evidence that tax competition is a major driving force behind the cantonal tax setting behaviour shaping cantonal income concentration for the very top incomes significantly.

Suggested Citation

  • Christoph Gorgas & Christoph A. Schaltegger, 2012. "The long run effect of taxes on the distribution of top income shares: an empirical investigation," CREMA Working Paper Series 2012-22, Center for Research in Economics, Management and the Arts (CREMA).
    • Handle: RePEc:cra:wpaper:2012-22
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    References listed on IDEAS

    as
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