EconPapers    
Economics at your fingertips  
 

Public support for tax policies in COVID-19 times: evidence from Luxembourg

Javier Olivera () and Philippe Van Kerm ()

International Tax and Public Finance, 2022, vol. 29, issue 6, No 3, 1395-1418

Abstract: Abstract We study attitudes towards the introduction of hypothetical new taxes to finance the cost of the COVID-19 pandemic. We rely on survey data collected in Luxembourg in 2020. The survey asks for the agreement of respondents over: a one-time net wealth tax, an inheritance tax, a temporary solidarity income tax, and a temporary increase in VAT. All questions include different and randomly assigned tax attributes (tax rates and exemption amounts). We find a clear divide with relatively high support for new wealth and inheritance taxes on the one hand and a low support for increases in VAT and income taxes on the other hand. While 58% of respondents agree or strongly agree with a one-time tax levied on net worth, only 24% are in favor of a small increase in VAT. Support for any tax is however negatively associated with the size of the tax as measured by the predicted revenues. Our results indicate that a one-time wealth tax could raise substantial revenues and still garner public support.

Keywords: COVID-19; Wealth tax; Inheritance tax; Income tax; VAT; Preferences for redistribution (search for similar items in EconPapers)
JEL-codes: D31 E62 H2 I38 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10797-022-09744-y Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Public support for tax policies in COVID-19 times: Evidence from Luxembourg (2022) Downloads
Working Paper: Public support for tax policies in COVID-19 times: Evidence from Luxembourg (2021) Downloads
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:kap:itaxpf:v:29:y:2022:i:6:d:10.1007_s10797-022-09744-y

Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/10797/PS2

DOI: 10.1007/s10797-022-09744-y

Access Statistics for this article

International Tax and Public Finance is currently edited by Ronald B. Davies and Kimberly Scharf

More articles in International Tax and Public Finance from Springer, International Institute of Public Finance Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2023-02-01
Handle: RePEc:kap:itaxpf:v:29:y:2022:i:6:d:10.1007_s10797-022-09744-y