Working Paper: NBER ID: w30031
Authors: Annette Alstadster; Marie Bjørneby; Wojciech Kopczuk; Simen Markussen; Knut Røed
Abstract: Countries that implement wealth taxes make many practical compromises regarding relative treatment and approach to valuation of different categories of assets in order to ease assessment and liquidity difficulties with this form of taxation. Relying on Norwegian variation in tax and base rules, we illustrate the resulting complexity and evaluate the effect of taxation on saving and portfolio composition. Our results highlight sensitivity of the strength of response to the base definition.
Keywords: No keywords provided
JEL Codes: D31; H24
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Wealth tax (H24) | Saving behavior (D14) |
| Wealth tax (H24) | Portfolio composition (G11) |
| Tax base definition (H20) | Elasticity of saving with respect to wealth tax (E21) |
| Wealth tax (comprehensive base) (H24) | Increase in debt (H63) |
| Wealth tax implementation (H26) | Taxpayer behavior (H32) |
| Wealth tax (H24) | Economic impact (F69) |
| Capital income tax changes (E25) | Response of saving (D14) |
| Wealth tax (imperfect implementation) (H29) | Response of saving (D14) |