Capital Taxation in the Twenty-First Century

Alan Auerbach and Kevin Hassett

American Economic Review, 2015, vol. 105, issue 5, 38-42

Abstract: In his influential book, Capital in the Twenty-First Century, Thomas Piketty argues forcefully that rising wealth and wealth inequality is an inherent characteristic of capitalist economies and calls for strong policy responses, in particular a substantial wealth tax implemented globally. This paper takes issue with the facts, logic, and policy conclusions in Piketty's book, suggesting that the factors needed to support the inexorable rise in capital's share and concentration are lacking and that among tax policy reforms aimed at dealing with economic inequality a wealth tax finds little support either in Piketty's own work or elsewhere in the literature.

JEL-codes: D31 E22 E23 E25 H24 H87 P16 (search for similar items in EconPapers)
Date: 2015
Note: DOI: 10.1257/aer.p20151058
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Citations: View citations in EconPapers (19)

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