F. R. D. Ufourt, L. I. K. Erdelhué, O. C. P. Iétri, J. Benhabib, Antoine Devulder, A. Eyquem, Julien Matheron, C. Poilly, Jean‐Christophe Poutineau, Ludwig Straub, Fabien Tripier
{"title":"预算中性的资本税削减","authors":"F. R. D. Ufourt, L. I. K. Erdelhué, O. C. P. Iétri, J. Benhabib, Antoine Devulder, A. Eyquem, Julien Matheron, C. Poilly, Jean‐Christophe Poutineau, Ludwig Straub, Fabien Tripier","doi":"10.2307/48674140","DOIUrl":null,"url":null,"abstract":"We revisit the canonical policy of eliminating capital taxation by increasing labor taxation in a endogenous-labor, heterogeneous-agent model with income and wealth heterogeneity, when the government is subject to a strict (per-period) balanced-budget constraint. By contrast with its non-budget neutral equivalent - associated with a constant tax rate over time and a permanent increase in the level of public debt - we show that the obtained endogenous path for the labor tax rate is sharply increasing in the initial period and decreasing over time. The policy then generates a deeper recession in the short-run and a greater expansion in the long-run, as well as a smaller decline in wealth inequality associated with a reduced incentive to save for precautionary motives. Overall, the policy still generates significant losses in average welfare.","PeriodicalId":37191,"journal":{"name":"Annals of Economics and Statistics","volume":"1 1","pages":""},"PeriodicalIF":0.0000,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":"{\"title\":\"BUDGET-NEUTRAL CAPITAL TAX CUTS\",\"authors\":\"F. R. D. Ufourt, L. I. K. Erdelhué, O. C. P. Iétri, J. Benhabib, Antoine Devulder, A. Eyquem, Julien Matheron, C. Poilly, Jean‐Christophe Poutineau, Ludwig Straub, Fabien Tripier\",\"doi\":\"10.2307/48674140\",\"DOIUrl\":null,\"url\":null,\"abstract\":\"We revisit the canonical policy of eliminating capital taxation by increasing labor taxation in a endogenous-labor, heterogeneous-agent model with income and wealth heterogeneity, when the government is subject to a strict (per-period) balanced-budget constraint. By contrast with its non-budget neutral equivalent - associated with a constant tax rate over time and a permanent increase in the level of public debt - we show that the obtained endogenous path for the labor tax rate is sharply increasing in the initial period and decreasing over time. The policy then generates a deeper recession in the short-run and a greater expansion in the long-run, as well as a smaller decline in wealth inequality associated with a reduced incentive to save for precautionary motives. Overall, the policy still generates significant losses in average welfare.\",\"PeriodicalId\":37191,\"journal\":{\"name\":\"Annals of Economics and Statistics\",\"volume\":\"1 1\",\"pages\":\"\"},\"PeriodicalIF\":0.0000,\"publicationDate\":\"2022-01-01\",\"publicationTypes\":\"Journal Article\",\"fieldsOfStudy\":null,\"isOpenAccess\":false,\"openAccessPdf\":\"\",\"citationCount\":\"0\",\"resultStr\":null,\"platform\":\"Semanticscholar\",\"paperid\":null,\"PeriodicalName\":\"Annals of Economics and Statistics\",\"FirstCategoryId\":\"1085\",\"ListUrlMain\":\"https://doi.org/10.2307/48674140\",\"RegionNum\":0,\"RegionCategory\":null,\"ArticlePicture\":[],\"TitleCN\":null,\"AbstractTextCN\":null,\"PMCID\":null,\"EPubDate\":\"\",\"PubModel\":\"\",\"JCR\":\"Q3\",\"JCRName\":\"Social Sciences\",\"Score\":null,\"Total\":0}","platform":"Semanticscholar","paperid":null,"PeriodicalName":"Annals of Economics and Statistics","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2307/48674140","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"Social Sciences","Score":null,"Total":0}
We revisit the canonical policy of eliminating capital taxation by increasing labor taxation in a endogenous-labor, heterogeneous-agent model with income and wealth heterogeneity, when the government is subject to a strict (per-period) balanced-budget constraint. By contrast with its non-budget neutral equivalent - associated with a constant tax rate over time and a permanent increase in the level of public debt - we show that the obtained endogenous path for the labor tax rate is sharply increasing in the initial period and decreasing over time. The policy then generates a deeper recession in the short-run and a greater expansion in the long-run, as well as a smaller decline in wealth inequality associated with a reduced incentive to save for precautionary motives. Overall, the policy still generates significant losses in average welfare.