2008
Taxing Risky Capital Income – A Commodity Taxation Approach
Publication
Publication
Finanzarchiv , Volume 64 p. 311- 333
In a two-period world with endogenous savings and two assets, the optimal tax struc- ture and optimal diversification of aggregate (capital) risk between private and public consumption are analyzed. We show that there is no trade-off between efficiency in intertemporal consumption and allocation of risk; both goals are reached as long as labor supply is exogenous. This requires, however, taxing the excess return at a special tax rate. Optimally extending the dual income tax for risky capital income, accordingly, leads to a tax system with three tax bases: the triple income tax.
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hdl.handle.net/1765/124535 | |
Finanzarchiv | |
Organisation | Erasmus School of Economics |
Schindler, D.S. (2008). Taxing Risky Capital Income – A Commodity Taxation Approach. Finanzarchiv, 64, 311–333. Retrieved from http://hdl.handle.net/1765/124535 |