EconPapers    
Economics at your fingertips  
 

Taxation and the Superrich

Florian Scheuer () and Joel Slemrod ()

No 26207, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper addresses the modern optimal tax progressivity literature, which clarifies the key role of the behavioral response to taxation and accounts for the incomes of the superrich being qualitatively different than others. Some may be “superstars,” for whom small differences in talent are magnified into much larger earnings differences, while others may work in winner-take-all markets, such that their effort to climb the ladder of success reduces the returns to others. We stress that pivotal tax-rate elasticities are not structural parameters, and will be smaller the broader and less plastic is the tax base and the more effective is the enforcement of tax evasion. For this reason, normative analysis of tax rates should be accompanied by attention to the tax base, with special attention to capital gains, which comprise a large fraction of the taxable income of the superrich.

JEL-codes: H2 H21 H26 (search for similar items in EconPapers)
Date: 2019-08
New Economics Papers: this item is included in nep-pbe and nep-pub
Note: PE
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Published as Florian Scheuer & Joel Slemrod, 2020. "Taxation and the Superrich," Annual Review of Economics, vol 12(1).

Downloads: (external link)
http://www.nber.org/papers/w26207.pdf (application/pdf)
Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html. Free access is also available to older working papers.

Related works:
Working Paper: Taxation and the Superrich (2019) Downloads
Working Paper: Taxation and the Superrich (2019) Downloads
Working Paper: Taxation and the superrich (2019) 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:nbr:nberwo:26207

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w26207
The price is Paper copy available by mail.

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2020-11-21
Handle: RePEc:nbr:nberwo:26207