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Taxing high-income earners: tax avoidance and mobility

Author

Listed:
  • Alejandro Esteller

    (Institute for Fiscal Studies and Barcelona Economics Institute, University of Barcelona)

  • Amedeo Piolatto

    (Institute for Fiscal Studies and Barcelona Economics Institute, University of Barcelona)

  • Matthew D. Rablen

    () (Institute for Fiscal Studies and Sheffield University)

Abstract

The taxation of high-income earners is of importance to every country and is the subject of a considerable amount of recent academic research. Such high-income earners contribute substantial amounts of tax and generate signifi cant positive spillovers, but are also highly mobile: a 1% increase in the top marginal income tax rate increases out-migrations by around 1.5 to 3%. We review research into taxation of high-income earners to provide a synthesis of existing theoretical and empirical understanding. We o ffer various avenues for potential future theoretical and empirical research.

Suggested Citation

  • Alejandro Esteller & Amedeo Piolatto & Matthew D. Rablen, 2016. "Taxing high-income earners: tax avoidance and mobility," IFS Working Papers W16/07, Institute for Fiscal Studies.
  • Handle: RePEc:ifs:ifsewp:16/07
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    More about this item

    Keywords

    high-income earners; mobility; tax avoidance;

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • K34 - Law and Economics - - Other Substantive Areas of Law - - - Tax Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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