|Koethenbuerger, Marko; Poutvaara, Panu (2009): Rent taxation and its intertemporal welfare effects in a small open economy. In: International Tax and Public Finance, Vol. 16, No. 5: pp. 697-709|
Previous literature concludes that replacing wage taxation by taxes on a fixed factor or its rents benefits future generations. However, the effects of such steady-state gains on the transition generations have been left open. In this paper, we show that taxation of rents may also increase utility of the current generation provided tax revenues are earmarked to reduce wage taxes. In particular, a shift in the tax mix may yield an intergenerational Pareto-improvement when the initially prevailing tax mix is sufficiently skewed toward wage taxation.
Economics > Chairs > CESifo-Professorship for International Institutional Comparisons
|Subjects:||300 Social sciences > 330 Economics|
|Deposited On:||15. Apr 2014 08:51|
|Last Modified:||29. Apr 2016 09:16|