Rent taxation in a small open economy: the effect on transitional generations

We show that taxation of rents may yield an intergenerational Pareto-improvement in a small open economy provided tax revenues are earmarked to reduce wage taxes. Previous literature has shown that rent taxation benefits current young and future generations, while we show that it also benefits the current old generation when the initially prevailing tax mix is sufficiently skewed towards wage taxation.

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Year of publication:	2007
Authors:	Koethenbuerger, Marko ; Poutvaara, Panu
Publisher:	Bonn : Institute for the Study of Labor (IZA)
Subject:	Gesetzliche Rentenversicherung \| Einkommensteuer \| Arbeitsangebot \| Generationenbeziehungen \| Intertemporale Allokation \| Theorie

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Series:	IZA Discussion Papers ; 2559
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	543281841 [GVK] hdl:10419/33679 [Handle]
Source:	EconStor

Persistent link: https://www.econbiz.de/10010267705