On the desirability of taxing capital income in optimal social insurance

• 成果类型: Article
• 署名作者: Jacobs, Bas; Schindler, Dirk
• 署名单位: Tinbergen Institute; Erasmus University Rotterdam - Excl Erasmus MC; Erasmus University Rotterdam; University of Konstanz
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2012.05.008
• 发表日期: 2012
• 页码: 853-868
• 关键词: Optimal capital-income taxation; RISK; Atkinson-Stiglitz theorem

摘要

This paper analyzes optimal linear taxes on labor income and savings in a two-period life-cycle model with ex ante identical households, endogenous leisure demands in both periods, and general processes of skill shocks over the life cycle. We demonstrate that the Atkinson-Stiglitz theorem breaks down under risk Capital taxes are employed besides labor income taxes for two distinct reasons: i) capital taxes reduce labor supply distortions on second-period labor supply, since second-period labor supply and saving are substitutes, ii) capital taxes insure first-period income risk, although this benefit is partially off-set because first-period labor supply and saving are complements. Our results imply that (retirement) saving should not be actuarially fair. (C) 2012 Elsevier B.V. All rights reserved.