Activity: Talk or presentation types › Oral presentation › Professional
Description
The government in the Netherlands will convert the current capital income tax scheme that taxes wealth to a scheme that taxes capital income. A well-known result from economic theory is that such a reform may be welfare-improving as taxing capital income implies a reduction of private risks. We argue that this is generally true, but also point to a possible downside of the reform: low wealth households may suffer from increased income volatility.