We tackle the issue of optimal dynamic taxation of capital income in an economy with disconnection a la Weil (1989) generated by migration and intra-family altruism. We show that, when the government aims at correcting such a disconnection using time varying weights in the social welfare function, then there is room for nonzero capital income taxation, both in the short and in the long run
Optimal income taxation and migration
Spataro, LucaSecondo
2018-01-01
Abstract
We tackle the issue of optimal dynamic taxation of capital income in an economy with disconnection a la Weil (1989) generated by migration and intra-family altruism. We show that, when the government aims at correcting such a disconnection using time varying weights in the social welfare function, then there is room for nonzero capital income taxation, both in the short and in the long runFile in questo prodotto:
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