This paper provides an empirical assessment of an annual wealth tax. Using Swedish administrative data, I estimate net-of-tax-rate elasticities of taxable wealth in the range [0.09, 0.27]. Cross-checking self-reported assets against asset data unavailable to the tax agency reveals that around a third of the elasticity estimates are due to underreporting of asset values. Difference-in-difference designs further suggest that the responses reflect evasion and avoidance rather than changes in saving.
American Economic Journal: Economic Policy
Behavioral Responses to Wealth Taxes: Evidence from Sweden
Journal Article
Reference
Seim, David (2017). “Behavioral Responses to Wealth Taxes: Evidence from Sweden”. American Economic Journal: Economic Policy 9(4), 395–421. doi.org/10.1257/pol.20150290
Seim, David (2017). “Behavioral Responses to Wealth Taxes: Evidence from Sweden”. American Economic Journal: Economic Policy 9(4), 395–421. doi.org/10.1257/pol.20150290
Author
David Seim