Wealth Taxation: The Key to Unlocking Capital Gains

dc.contributor.author	Schjelderup, Guttorm
dc.contributor.author	Zoutman, Floris T.
dc.date.accessioned	2024-09-30T08:41:31Z
dc.date.available	2024-09-30T08:41:31Z
dc.date.issued	2024-09-30
dc.identifier.issn	2387-3000
dc.identifier.uri	https://hdl.handle.net/11250/3155061
dc.description.abstract	We study how wealth taxes affect portfolio choice in the presence of a realization-based tax on capital gains. We develop a two-period model with heterogeneous investors. Capital gains taxations distort portfolio choice by providing an incentive to postpone realization.We show that a wealth tax levied alongside the capital gains tax can eliminate this distortion for all investors. We develop an optimal-tax model that trades of equity gains from the capital-gains and wealth tax to efficiency losses related to intertemporal and portfolio choice, and derive an elasticity-based empirical criterion for the desirability of a wealth tax.	en_US
dc.language.iso	eng	en_US
dc.publisher	FOR	en_US
dc.relation.ispartofseries	Discussion paper;10/24
dc.subject	Wealth Tax	en_US
dc.subject	Capital-gains Tax	en_US
dc.subject	Dividend Tax	en_US
dc.subject	Lock-in Effect	en_US
dc.subject	Capital-market Efficiency	en_US
dc.title	Wealth Taxation: The Key to Unlocking Capital Gains	en_US
dc.type	Working paper	en_US
dc.source.pagenumber	43	en_US