Behavioral Responses to Wealth Taxes: Evidence from Sweden
- (pp. 395-421)
AbstractThis paper provides an empirical assessment of an annual wealth tax. Using Swedish administrative data, I estimate net-of-tax-rate elasticities of taxable wealth in the range [0.09, 0.27]. Cross-checking self-reported assets against asset data unavailable to the tax agency reveals that around a third of the elasticity estimates are due to underreporting of asset values. Difference-in-difference designs further suggest that the responses reflect evasion and avoidance rather than changes in saving.
CitationSeim, David. 2017. "Behavioral Responses to Wealth Taxes: Evidence from Sweden." American Economic Journal: Economic Policy, 9 (4): 395-421. DOI: 10.1257/pol.20150290
- H24 Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
- H26 Tax Evasion and Avoidance
- H31 Fiscal Policies and Behavior of Economic Agents: Household