Rent Taxation in a Small Open Economy: The Effect on Transitional Generations
We show that taxation of rents may yield an intergenerational Pareto-improvement in a small open economy provided tax revenues are earmarked to reduce wage taxes. Previous literature has shown that rent taxation benefits current young and future generations, while we show that it also benefits the current old generation when the initially prevailing tax mix is sufficiently skewed towards wage taxation.
|Date of creation:||Jan 2007|
|Date of revision:|
|Publication status:||published in: International Tax and Public Finance, 2009, 16 (5), 697-709|
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