Long-run inheritance tax and capital income tax with rational altruism

Pascal Belan () and Erwan Moussault

Economics Bulletin, 2021, vol. 41, issue 1, 7182-191

Abstract: We consider a two-period overlapping generation model with rational altruism à la Barro. The government finances public spending with taxes on labor income, capital income and inheritance. We show that, in the long-run, inheritance tax and capital income tax are generally different from zero, even if the optimal tax policy leads to the modified Golden-rule.

Keywords: inheritance tax; capital income tax; altruism. (search for similar items in EconPapers)
JEL-codes: D6 H2 (search for similar items in EconPapers)
Date: 2021-03-10
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Working Paper: Long-run inheritance tax and capital income tax with rational altruism (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-20-00594

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