Long-run inheritance tax and capital income tax with rational altruism
Pascal Belan () and
Erwan Moussault ()
No 2020-02, THEMA Working Papers from THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise
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: D64 H21 D91 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-pbe and nep-pub
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Persistent link: https://EconPapers.repec.org/RePEc:ema:worpap:2020-02
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