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Taxing the Rich

Author

Listed:
  • Landier, Augustin
  • Plantin, Guillaume

Abstract

Afluent households can respond to taxation with means that are not economically viable for the rest of the population, such as sophisticated tax plans and international tax arbitrage. This paper studies an economy in which an inequality-averse social planner faces agents who have access to a tax-avoidance technology with increasing returns to scale, and who can shape the risk proÖle of their income as they see fit. Scale economies in avoidance imply that optimal taxation is regressive at the top. This in turn may trigger excessive risk taking.

Suggested Citation

  • Landier, Augustin & Plantin, Guillaume, 2013. "Taxing the Rich," TSE Working Papers 13-514, Toulouse School of Economics (TSE).
  • Handle: RePEc:tse:wpaper:28368
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:soceco:v:81:y:2019:i:c:p:195-206 is not listed on IDEAS
    2. Viral Acharya & Guillaume Plantin, 2018. "Monetary Easing, Investment and Financial Instability," Sciences Po publications DP 13072, Sciences Po.
    3. Sala, Hector, 2019. "A fresh look at fiscal redistribution and inequality in the US across electoral cycles," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 81(C), pages 195-206.

    More about this item

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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