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1. (Thread): Here is a tweet summary of our paper on wealth taxation: “Use It or Lose it: Efficiency Gains from Wealth Taxation”: bit.ly/2k46stT
Along the way, I discuss some qualifications, and clarify a few things.
Along the way, I discuss some qualifications, and clarify a few things.
2. Our bottom line result is that wealth taxation is preferable to capital income taxation for several reasons. It improves aggregate productivity, reduces some key types of inequality, and raises welfare for a large majority of households.
3. Key feature of wealth taxes that delivers these results is “use-it-or-lose-it” effect (hence the title), which is a powerful mechanism that reallocates wealth to improve aggregate efficiency/productivity. It emerges from a combination of two features/assumptions:
