IDEAS home Printed from https://ideas.repec.org/a/taf/revpoe/v26y2014i1p85-110.html
   My bibliography  Save this article

Capital Wealth Taxation: Theory and Application

Author

Listed:
  • James Yunker

Abstract

Using an ls model analysis, the economic effects of implementing a modest taxation rate on capital wealth (3%) are found to be basically favorable: slightly higher output, lower inequality as measured by various Gini coefficients, and higher social welfare according to the three major social welfare functions-Bentham, Nash and Rawls. Implementing capital wealth taxation enables a compensating reduction in the labor-income taxation rate. The single most important consequence of this change is increased labor output among the wealthiest households, whose labor productivity is highest. Even though labor output is reduced among less-wealthy households, the overall effect on aggregate output is positive.

Suggested Citation

  • James Yunker, 2014. "Capital Wealth Taxation: Theory and Application," Review of Political Economy, Taylor & Francis Journals, vol. 26(1), pages 85-110, January.
    • Handle: RePEc:taf:revpoe:v:26:y:2014:i:1:p:85-110
    DOI: 10.1080/09538259.2013.874193
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09538259.2013.874193
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09538259.2013.874193?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jane G. Gravelle, 1994. "The Economic Effects of Taxing Capital Income," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262071584, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yunker, James A., 2016. "Economic inequality and optimal redistribution: A theoretical and empirical analysis," Journal of Policy Modeling, Elsevier, vol. 38(3), pages 528-552.
    2. Yunker James A., 2013. "The Basic Income Guarantee: A General Equilibrium Evaluation," Basic Income Studies, De Gruyter, vol. 8(2), pages 203-233, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Karl Whelan, 2002. "Computers, Obsolescence, And Productivity," The Review of Economics and Statistics, MIT Press, vol. 84(3), pages 445-461, August.
    2. Puspa Kandel Ph.D., 2001. "Corporate Tax in Nepal: Effective Burden (1975-2000)," NRB Economic Review, Nepal Rastra Bank, Research Department, vol. 13, pages 66-81, April.
    3. Chirinko, Robert S. & Wilson, Daniel J., 2008. "State investment tax incentives: A zero-sum game?," Journal of Public Economics, Elsevier, vol. 92(12), pages 2362-2384, December.
    4. Robinson, Leslie A. & Sansing, Richard, 2008. "The effect of "invisible" tax preferences on investment and tax preference measures," Journal of Accounting and Economics, Elsevier, vol. 46(2-3), pages 389-404, December.
    5. Neil H. Buchanan, 1999. "A User’s Guide to Proposals to Replace the U.S. Tax System and Strangle Fiscal Policy," Journal of Economic Issues, Taylor & Francis Journals, vol. 33(3), pages 505-523, September.
    6. Jesse Edgerton, 2012. "Investment, Accounting, and the Salience of the Corporate Income Tax," NBER Working Papers 18472, National Bureau of Economic Research, Inc.
    7. Ventura, Gustavo, 1999. "Flat tax reform: A quantitative exploration," Journal of Economic Dynamics and Control, Elsevier, vol. 23(9-10), pages 1425-1458, September.
    8. Ctirad Slavík & Hakki Yazici, 2019. "On the consequences of eliminating capital tax differentials," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(1), pages 225-252, February.
    9. Raymond G. Batina, 1999. "A Differential Incidence Analysis of a Tax Reform From an Income Tax to a Consumption Tax in the Presence of Bequests," Public Finance Review, , vol. 27(3), pages 353-370, May.
    10. Torkkeli Anu & Kukkonen Matti, 2017. "Reforming capital gains taxation of intercorporate share realizations : a law and economics approach from a Nordic perspective," Nordic Tax Journal, Sciendo, vol. 2017(1), pages 47-58, January.
    11. Hennessy, Christopher A. & Livdan, Dmitry, 2021. "Learning, parameter drift, and the credibility revolution," Journal of Monetary Economics, Elsevier, vol. 117(C), pages 395-417.
    12. Jane Marrinan & Eric Van Wincoop, 1993. "Public And Private Savings And Investments," Boston College Working Papers in Economics 259, Boston College Department of Economics.
    13. Engen, Eric M. & Gravelle, Jane G. & Smetters, Kent, 1997. "Dynamic Tax Models: Why They Do the Things They Do," National Tax Journal, National Tax Association;National Tax Journal, vol. 50(3), pages 657-682, September.
    14. Cooley, Thomas F. & Greenwood, Jeremy & Yorukoglu, Mehmet, 1997. "The replacement problem," Journal of Monetary Economics, Elsevier, vol. 40(3), pages 457-499, December.
    15. Occhino, Filippo, 2023. "The macroeconomic effects of business tax cuts with debt financing and accelerated depreciation," Economic Modelling, Elsevier, vol. 125(C).
    16. Neil H. Buchanan, 1996. "A Critique of Competing Plans for Radical Tax Restructuring," Economics Working Paper Archive wp_173, Levy Economics Institute.
    17. Gravelle, Jane G., 1995. "The Corporate Income Tax: Economic Issues and Policy Options," National Tax Journal, National Tax Association;National Tax Journal, vol. 48(2), pages 267-277, June.
    18. Liu, Li & Altshuler, Rosanne, 2013. "Measuring the Burden of the Corporate Income Tax Under Imperfect Competition," National Tax Journal, National Tax Association;National Tax Journal, vol. 66(1), pages 215-237, March.
    19. Sijbren Cnossen, 2002. "Tax Policy in the European Union: A Review of Issues and Options," CESifo Working Paper Series 758, CESifo.
    20. Tj Steenekamp, 2000. "Good Tax Practice and Taxing Capital Gains," South African Journal of Economics, Economic Society of South Africa, vol. 68(4), pages 348-351, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:revpoe:v:26:y:2014:i:1:p:85-110. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRPE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.