How Should Capital Be Taxed? Theory and Evidence from Sweden

Spencer Bastani and Daniel Waldenström

No 11475, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper presents a comprehensive analysis of the role of capital taxation in advanced economies with a focus on the Swedish experience. We synthesize the existing theoretical literature, present facts about the capital stock and its distribution, review current capital tax practices and empirical findings regarding their effects on economic activity. The paper also examines the political feasibility of capital taxation by presenting results from a unique attitude survey targeted to a large representative sample of the Swedish population. Finally, we tie together our findings and discuss their implications for tax policy.

Keywords: optimal taxation; capital taxation; wealth tax; inheritance tax; corporate tax; income inequality; wealth inequality; political economy; preferences for redistribution (search for similar items in EconPapers)
JEL-codes: D31 F38 H21 H24 (search for similar items in EconPapers)
Pages: 79 pages
Date: 2018-04
New Economics Papers: this item is included in nep-acc, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Related works:
Working Paper: How Should Capital be Taxed? Theory and Evidence from Sweden (2018)
Working Paper: How Should Capital Be Taxed? Theory and Evidence from Sweden (2018)
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