Tax Evasion and Capital Taxation

• 成果类型: Article
• 署名作者: Rotberg, Shahar; Steinberg, Joseph B.
• 署名单位: University of Toronto
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/729066
• 发表日期: 2024
• 页码: 2488-2529
• 关键词: SELF-EMPLOYMENT INCOME; taxable income; entrepreneurship; frictions; rates

摘要

Wealth inequality has prompted calls for higher taxes on capital income and wealth but also concerns that rich households would respond by concealing their assets offshore. We use a general equilibrium model to study how taxing capital more heavily would affect offshore tax evasion and how this would affect the broader economy. Without evasion, tax revenue could be increased dramatically, inequality could be reduced, and widespread welfare gains could be achieved. After accounting for evasion, however, tax revenue would rise marginally or even fall, inequality would increase, and widespread welfare losses would result.