Optimal Capital Income Taxation with Means-tested Benefits
This paper studies the interaction between capital income taxation and a means-tested age pension. Our results document that the existence of a social insurance program financed from general revenue puts an upward pressure on the optimal tax rate. We also show that there is a negative relation between taper (benefit-reduction) and optimal capital income tax rates. The potential welfare gain from optimizing capital taxation in the presence of a universal retirement transfer system is relatively...[Show more]
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|Source:||Scottish Journal of Political Economy|
|01_Kumru_Optimal_Capital_Income_2017.pdf||484.85 kB||Adobe PDF||Request a copy|
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