Redistribution with Unobservable Bequests: A Case for Taxing Capital Income

Robin Boadway, Maurice Marchand and Pierre Pestieau

Scandinavian Journal of Economics, 2000, vol. 102, issue 2, 253-267

Abstract: This paper addresses the question of the optimal taxation of labour and interest income in an overlapping generations model with two unobservable characteristics, ability and inheritance. We assume realistically that saving can only be taxed anonymously, whereas the tax on labour earnings can be individualized and made non‐linear. In such a setting, we show that a withholding tax on interest income along with a non‐linear tax on labour income is desirable. The role of interest income taxation is to indirectly tax inherited wealth. JEL Classification D63, H2

Date: 2000
References: Add references at CitEc
Citations: View citations in EconPapers (50)

Downloads: (external link)
https://doi.org/10.1111/1467-9442.00198

Related works:
Working Paper: Redistribution with unobservable bequests: a case for taxing capital income (2000)
Working Paper: Redistribution with unobservable bequests: a case for taxing capital income (1997)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:scandj:v:102:y:2000:i:2:p:253-267

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0347-0520

Access Statistics for this article

Scandinavian Journal of Economics is currently edited by Richard Friberg, Matti Liski and Kjetil Storesletten

More articles in Scandinavian Journal of Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().