A progressive capital income tax - a bad idea, or just a useless idea? Lessons for Bulgaria (1999-2018)

Aleksandar Vasilev

EconStor Open Access Articles and Book Chapters, 2020, vol. 2, issue 4, 402-411

Abstract: Progressive capital taxation is introduced into a real-business-cycle (RBC) model with fiscal policy. The artificial economy is calibrated to Bulgarian data for the period 1999-2018. The quantitative role of progressive taxation on capital income is investigated for the stabilization of cyclical fluctuations in Bulgaria. Unfortunately, the quantitative effect of the presence of such a tax turned out to be very small, and thus not important for either business cycle stabilization, or public finance issues.

Keywords: business cycles; progressive capital income taxation; Bulgaria (search for similar items in EconPapers)
JEL-codes: E24 E32 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:espost:228522

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