Behavioral Responses to Wealth Taxes: Evidence from Sweden | Zendy

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Behavioral Responses to Wealth Taxes: Evidence from Sweden

Author(s) -

David Seim

Publication year - 2017

Publication title -

american economic journal economic policy

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 7.868

H-Index - 62

eISSN - 1945-7731

pISSN - 1945-774X

DOI - 10.1257/pol.20150290

Subject(s) - taxable income , economics , asset (computer security) , monetary economics , tax evasion , econometrics , public economics , accounting , computer security , computer science

This 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.

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