This Website uses cookies. By using this website you are agreeing to our use of cookies and to the terms and conditions listed in our data protection policy. Read more

Journal of Economic Surveys

How Should Capital be Taxed?

Journal Article
Bastani, Spencer and Daniel Waldenström (2020). “How Should Capital be Taxed?”. Journal of Economic Surveys 34(4), 812–846.

Spencer Bastani, Daniel Waldenström

This survey discusses how capital should be taxed in advanced economies. We review the theoretical optimal tax literature, survey empirical studies on the distribution of capital and the distortionary costs of capital taxation, and analyze the desirability of specific taxes on capital income, wealth, property, inheritances, and corporate profits. Our overall conclusion is that capital taxation plays an important role in an optimal tax system, but only certain ways of taxing capital are able to strike a balance between optimality and administrative feasibility.

Spencer Bastani

+46 (0)18 471 7077
+46 (0)73 150 7751

Daniel Waldenström

+46 (0)8 665 4584
+46 70 491 6082