- Treffer 1 von 1
Aggregate and distributional effects of increasing taxes on top income earners
- We analyze the macroeconomic implications of increasing the top marginal income tax rate using a dynamic general equilibrium framework with heterogeneous agents and a fiscal structure resembling the actual U.S. tax system. The wealth and income distributions generated by our model replicate the empirical ones. In two policy experiments, we increase the statutory top marginal tax rate from 35 to 70 percent and redistribute the additional tax revenue among households, either by decreasing all other marginal tax rates or by paying out a lump-sum transfer to all households. We find that increasing the top marginal tax rate decreases inequality in both wealth and income but also leads to a contraction of the aggregate economy. This is primarily driven by the negative effects that the tax change has on top income earners. The aggregate gain in welfare is sizable in both experiments mainly due to a higher degree of distributional equality.
| Verfasserangaben: | Bettina BrüggemannGND, Jinhyuk YooGND |
|---|---|
| URN: | urn:nbn:de:hebis:30:3-371468 |
| URL: | http://www.imfs-frankfurt.de/fileadmin/user_upload/IMFS_WP/IMFS_WP_94.pdf |
| Titel des übergeordneten Werkes (Englisch): | Working paper series / Institute for Monetary and Financial Stability ; 94 |
| Schriftenreihe (Bandnummer): | Working paper series / Institute for Monetary and Financial Stability (94) |
| Verlag: | Johann Wolfgang Goethe-Univ., Inst. for Monetary and Financial Stability |
| Verlagsort: | Frankfurt am Main |
| Dokumentart: | Arbeitspapier |
| Sprache: | Englisch |
| Jahr der Fertigstellung: | 2015 |
| Jahr der Erstveröffentlichung: | 2015 |
| Veröffentlichende Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Datum der Freischaltung: | 27.07.2015 |
| Freies Schlagwort / Tag: | Income and Wealth Inequality Heterogeneous Agents; Incomplete Markets; Top Income Taxation |
| Seitenzahl: | 36 |
| HeBIS-PPN: | 362914923 |
| Institute: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
| Wissenschaftliche Zentren und koordinierte Programme / Institute for Monetary and Financial Stability (IMFS) | |
| Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) | |
| Wissenschaftliche Zentren und koordinierte Programme / Sustainable Architecture for Finance in Europe (SAFE) | |
| DDC-Klassifikation: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Sammlungen: | Universitätspublikationen |
| Lizenz (Deutsch): |  Deutsches Urheberrecht |
