Optimal Income Redistribution and Capital Market Integration

Hongyan Yang

FinanzArchiv: Public Finance Analysis, 2015, vol. 71, issue 4, 460-473

Abstract: This paper shows that, from the viewpoint of income redistribution and under the assumption of a positive correlation between labor income and capital income, capital market integration requires a shift from capital taxation to labor taxation. A higher degree of capital mobility lowers the capital tax rate, and the reduced redistribution of capital income should be counteracted by greater redistribution of labor income. Therefore, this paper argues for a more redistributive labor tax as a remedy for the detrimental effect of capital tax competition on income redistribution.

Keywords: income redistribution; tax competition (search for similar items in EconPapers)
JEL-codes: F6 H2 (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mohrsiebeck.com/en/article/optimal-inc ... 22115x14425626525047 (text/html)
Fulltext access is included for subscribers to the printed version.

Related works:
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:mhr:finarc:urn:sici:0015-2218(201512)71:4_460:oiracm_2.0.tx_2-i

Ordering information: This journal article can be ordered from
Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany

DOI: 10.1628/001522108X14425626525047

Access Statistics for this article

FinanzArchiv: Public Finance Analysis is currently edited by Alfons Weichenrieder, Ronnie Schöb and Jean-François Tremblay

More articles in FinanzArchiv: Public Finance Analysis from Mohr Siebeck, Tübingen
Bibliographic data for series maintained by Thomas Wolpert ().