We consider optimal taxation in a model with wealth-poor and wealth-rich households, where wealth derives from business capital and home ownership, and investigate the consequences of a rising wealth inequality at steady state on these tax rates. The optimal tax structure includes some taxation of labor, zero taxation of financial and business capital, a housing wealth tax on the wealth-rich households and a housing subsidy on the wealth-poor households. When wealth inequality increases, the optimal balance between labor and housing wealth taxes depends on the source of the increasing wealth.
|Titolo:||Optimal Taxation with Homeownership and Wealth Inequality|
|Data di pubblicazione:||2021|
|Appare nelle tipologie:||01.1 - Articolo su rivista (Article)|