Tax cuts for the richest fifth of working Swedes are completely self-financing. An expression for the Laffer curve for high incomes is derived, assuming a constant Pareto parameter and elasticity of taxable income. Microsimulations using Swedish population data show that the simulated curve matches the theoretically derived Laffer curve well, suggesting that the analytical expression is not too much of a simplification.
A country-level dataset of top effective marginal tax rates and Pareto parameters is assembled.
Related books and articles
Revenue-maximizing tax rates and degrees of self-financing for a small tax cut are also computed. The results indicate that degrees of self-financing range between 28 and percent. Five countries have higher tax rates than the peak of the Laffer curve. We examine preferences for redistribution inherent in Swedish tax policy — using the inverse optimal tax approach. The income distribution is carefully characterized with the help of administrative register data and we employ behavioral elasticities reflecting the perceived distortionary effects of taxation.
The revealed social welfare weights are high for non-workers, small for low-income earners, and hump-shaped around the median. This paper presents new estimates of wealth inequality in Sweden during —, linking wealth register data up to and individually capitalized wealth based on income and property tax registers for the period thereafter when a repeal of the wealth tax stopped the collection of individual wealth statistics.
We find that wealth inequality increased after and that more unequal bank holdings and housing appear to be important drivers. We also evaluate the performance of the capitalization method by contrasting its estimates and their dispersion with observed stocks in register data up to Their revelations concerning the wealth concentrated among the richest one percent of Americans—and, perhaps even more striking, among the richest 0.
The book presents a general theory of capitalism intended to answer a basic but profoundly important question. As Piketty puts it:. Or do the balancing forces of growth, competition, and technological progress lead in later stages of development to reduced inequality and greater harmony among the classes, as Simon Kuznets thought in the twentieth century?
The Wealth of Nations - Wikipedia
Click here to learn more. In-depth analysis delivered weekly - Subscribe to our newsletter, featuring our editors' top picks from the past week.
Sign in Subscribe. Subscribe Login Sign up.
Foreign Policy. Login Sign up.
- The Cambridge Companion to the Age of Constantine (Cambridge Companions to the Ancient World).
- Deception: The true story of the international drug plot that brought down Australias top law enforcer Mark Standen!
- FEDS Notes.
- Uncle Sams Schoolhouse: Bullying, Predators, and Students.
- Democrats Take Aim at the Reagan Tax Revolution.